An application for the development is before the State Government and awaiting approval by NSW Planning Minister Kristina Keneally.

Club president John Stewart said the ambitious project was something the club needed to do to keep pace with other outlets across the Hunter and also to prepare for the population boom expected to occur in the Cessnock local government area over the next 10 years.

"We have Huntlee and Bellbird North developments ready to go ahead and the club and its members have great faith in this area," Mr Stewart said.

The club was negotiating with the NSW Department of Corrective Services and aged care provider Calvary over land leasing to accommodate some components of the development.

"It has become obvious with everything that's going on in the Valley, like the big-name concerts at Hope Estate and other wineries, (that) there are a lot of people travelling to this area and there is a big need for accommodation," Mr Stewart said.

"We don't just want to cater for golfers but for tourists in general."

The club was formed in 1926 and the clubhouse was converted from squash courts about 10 years ago.

"We really need this latest work to go ahead to progress the club and bring us into the 21st century so we can properly service the needs of the people of Cessnock, social players and our guests from overseas," he said.

The Jack Newton International junior golf competition is played at The Oaks annually and attracts players from across Australia and overseas.

Mr Stewart said Newton would design the new course, which would have eight new holes.

If approved, the development would provide a huge boost to the Cessnock economy and create many jobs both during construction and after, he said.