The university will launch its "world-class" Doctor of Medicine (MD) program in the city in January 2022 as part of the Federal Government's $95 million Murray Darling Medical Schools Network.

It will be the first time that the postgraduate course will be offered "in its entirety" outside of Sydney.

A federal government grant of $7.65 million will pay for the new buildings with construction expected to start in January 2021.

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The university is hoping to have an official sod-turning ceremony later this year, albeit in a "slightly different format than normal" because of COVID-19 pandemic restrictions.

Dubbo and district residents may be among the first intake of students.

"We have already had a lot of inquiries from local people, many working in health, who are interested in enrolling," a university spokesman said.

"Priority will be given to rural and Indigenous people."

The spokesman said the new buildings would be "supplementary" to existing teaching, administration and student accommodation facilities at the School of Rural Health.

Features of the new buildings included "new anatomy teaching spaces, additional lecture rooms and a six-suite simulation training centre", he said.

The annual intake of the four-year course will be 24 with the student body building to 96 by 2025.

"We will also continue to offer an additional eight 12-month placements for medical students in years three and four to provide rural clinical attachments for Sydney-based students," the spokesman said.

"We have on-site accommodation, and this will be offered to the year one students plus the eight students on 12-month placements from Sydney.

"All other students will live in the community."

The spokesman said the university was committed to "improving health outcomes for rural people through improved access to medical education".

"Evidence shows that along with a long-term rural placement, medical students who are from a rural area are more likely to return to work in a rural area," he said.