More than 60 doctors and nurses will be recruited to help run the $35 million Western Cancer Centre Dubbo.
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The contract to build the new facility is expected to be awarded mid-2019.
It will be built on the western edge of the Dubbo Hospital campus, replacing old operating theatres and the existing dialysis unit.
They will be knocked down after work on a new dialysis unit on level one of the Talbragar Building is competed at the end of 2019.
Work on the cancer centre is expected to begin next year and be finished around the same time as stage four redevelopment of the hospital in 2021.
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Health Infrastructure and Dubbo Hospital general manager Debbie Bickerton have provided an update on planning for the cancer centre for which the federal government has provided $25 million and the state government $10 million.
They report of work progressing on the new dialysis unit being constructed above the extended day surgery unit in the Talbragar Building, a surgical and maternity hub for the region.
Workers in hard hats are currently getting reading to put up frames.
The Health Infrastructure spokeswoman identified the layout of the new dialysis unit and the cancer centre.
"The dialysis unit will include two consultation rooms, two isolation rooms and treatment space for 14 renal dialysis chairs and two renal training chairs in separate rooms, and an expansion zone for four future dialysis chairs," she said.
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"Once dialysis patients and staff have moved in to the new purpose-built facility, construction can get under way on the $35 million Western Cancer Centre Dubbo.
"The new cancer centre will comprise of two floors. On the ground floor will be the radiation oncology reception area and radiation therapy bunker and PET CT scanner. The second floor will include reception area and clinic rooms, chemotherapy and haematology treatment spaces and offices."
Ms Bickerton said level one of the cancer centre "will link into" level one of the three-storey clinical building being constructed under stage four redevelopment.
The hospital general manager said most of the new recruits for the cancer cancer would be "in radiotherapy because we don't have that now".
They will include a physicist and a radiation oncologist.
Ms Bickerton said radiation oncologists from Orange would continue to visit Dubbo Hospital.
"It will be a LHD (Western NSW Local Health District) service on two sites," she said.
"It won't be run as a separate service to Orange."
Stages one to four of the redevelopment are costing $241.3 million with almost all of the funding coming from the state government.
