Deputy NSW Premier and Regional Minister Paul Toole said 300,000 cubic metres of sand would be used at Stockton beach, where coastal erosion has been a problem for decades.

Newcastle City Council has been sandbagging parts of the beach to reduce the impact of erosion for years, and has developed a coastal management plan that includes long-term actions to manage and protect Stockton's coastline.

The federal government will inject $4.8 million into the state government's project to secure the 300,000 cubic metres of sand to buffer against future storm erosion.

Mr Toole says it's a great win for the local community and his government.

"(The groups) have worked tirelessly to investigate, develop and design this project," he said.

Wild weather has been causing damage to the Newcastle beach for years.

In 2020 beachfront residents were warned their homes were at risk of collapse.

The NSW government has provided $1.5 million to Newcastle Council to investigate ways to source sand to rehabilitate the area, and an additional $1 million to complete a detailed study to assess the viability of a sand source offshore at Stockton Beach.

A Stockton Beach Taskforce has been established to address the ongoing issue of coastal erosion.

Australian Associated Press