The NSW Government is spending $45 million to upgrade the highway between Kelso and Raglan, which will improve traffic flows once it is complete.

Member for Bathurst Paul Toole said early works for the project will begin on Monday and continue through December.

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Weather permitting, it will allow major work on the road to commence in January, which will take around two and half years to finish.

"About 10,000 vehicles use the Great Western Highway between Kelso and Raglan every day and during big events like the Bathurst 1000 and peak holiday times, it's even busier," Mr Toole said.

"The upgrade will significantly improve traffic flow, delivering additional lanes and turning lanes to keep traffic moving.

"It will also provide better access to Bathurst airport, and increased safety, with traffic lights to be installed at the intersection of PJ Moodie Drive and Eugenie Street."

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The project will create more than 100 local jobs during what has been a tough time for employment.

"We are getting on with the job of delivering safer, better roads for the people of the Central West, which is also creating and supporting local jobs as regional communities recover from COVID-19," Mr Toole said.

The start of work has been welcomed by Bathurst's deputy mayor Ian North, who has been calling for the highway to be expanded at Raglan for years.

While he would have liked Raglan to be part of the earlier highway expansion works at Kelso, he is pleased it is happening now.

"Bathurst, being a gateway to the Central West, it's great to have that entrance into Bathurst all fixed up, and our airport and Raglan, it helps the people there," Cr North said. "It's a nice addition to Bathurst, which is needed for such an important regional city."

He also welcomed the jobs that this project will create for local people.

It is something he would like to see happen with other projects as Bathurst tries to recover from COVID-19.

"If everything's done right and the processes are right and then we can find ways to create jobs, to create opportunities, and support businesses, it's got to be important," Cr North said.

"COVID-19, I've spoken to a lot of people about this, it's made people think about what's in their backyard and maybe for $1 more it is worth it; sometimes we went to a stage where we kept looking at price, but this has probably changed people's thinking.

"If we can keep the jobs here and the money in our town, you create potential new jobs, and that's a good thing."