Attorney General and Minister for the Prevention of Domestic Violence Mark Speakman said the upgrades would increase the capacity of the complex and help meet the needs of the community.

Mr Speakman said Dubbo was one of the busiest court houses in NSW, and saw about 6500 criminal matters and 25 district and supreme court trials every year.

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"At the moment we have three courtrooms [in Dubbo] and this announcement will see an expansion by one third capacity of this court and court house to deal with matters in the central west," he said.

The new multi-purpose courtroom will include a dock for custodial matters and state-of-the-art audiovisual facilities so witnesses can give evidence remotely.

The new building will also tie in with the heritage features of the 130-year-old court house and has been designed in conjunction with heritage architects and officers from the department of community justice and also the heritage council.

"I'm probably biased as the Attorney General, but this is one of the most spectacular public buildings here in Dubbo, and one of the most spectacular public buildings in NSW," Mr Speakman said.

"It's been incredibly important that whatever we do on this site respects the heritage of this 130-year-old building.

"The colour of the new building will be dark brick, which will reflect the buildings to the north and the south of this site. The windows will reflect the architecture here as well."

"So that is incredibly important and something, as the former heritage minister, am deeply interested in."

The state-government said the multi-purpose building could be used to house a future drug court.

"This [new courtroom] will be future proofed and capable of housing a drug court here in Dubbo," Mr Speakman said.

He said the state government were expected to respond to recommendations made by the Ice Inquiry, for the roll out of a drug rehab facility and drug court, by the end of the year.

Member for the Dubbo Electorate Dugald Saunders said the $3.6 million injection into the new courtroom would future proof the region and provide jobs.

He thanked local company North Constructions who would be constructing the building.

"It is a significant project, apart from the injection of the money, its the injection of new jobs," he said.

"Projects like these are the life-blood of communities like ours, and this court services a vast area of regional NSW."

The announcement comes on top of $1.5 million spent on upgrading courts across the Dubbo circuit including Wellington and Narromine.

The new building is expected to be completed by June 2021.