The money will build on the library's existing catalogue of free e-books, newspapers, magazines, music and movie streaming services as well as online learning.

Council said in a statement on Friday its e-library accounted for 30 per cent of library loans across the Newcastle local government area.

It said the number of new users of the city's free library app jumped by 53 per cent from February to March.

Lord mayor Nuatali Nelmes said Newcastle had one of the highest library membership take-ups per population in the state, making the e-library a powerful tool to promote personal wellbeing and enjoyment.

"With a user network this broad, Newcastle libraries is well placed to keep the community connected at a time of social disruption and isolation, particularly the most vulnerable among us," she said.

"Many have found themselves with more idle time on their hands and, while our libraries are temporarily closed to limit the spread of COVID-19, the depth and variety of content in our e-library can take you anywhere - you can research a new hobby, take a virtual trip using our travel guides, or go on a wild adventure with our people and places titles."

You can join Newcastle libraries online, gaining immediate access to all digital content via the free Newcastle Library App or the website, newcastle.nsw.gov.au/Library - free for people who live and work in the Newcastle region.

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