The centre was facing closure in February, last year, due to COVID-19 impacts on fundraising.

Suzanne Clark-Pitrolo established the not-for-profit after her own experience battling cancer, and since it opened four years ago it has treated more than 1,200 people from the Newcastle and Hunter region with cancer and chronic illness.

The purpose-built facility allows people in all stages of cancer to take part in custom, targeted exercise programs under the guidance of health professionals.

Federal Newcastle MP Sharon Claydon said she was "delighted" that the government has kept the centre's doors open to continue its innovative oncology exercise program.

"The Kaden Centre has helped over a thousand people in the Newcastle area, and it is vital that they are able to continue to do this important work thanks to the Albanese government's investment," she said.

The funding, which has been delivered through the Hunter, New England and Central Coast Primary Health Network will ensure the centre can continue its work with cancer patients though specialised exercise physiology care.

There is strong evidence showing exercise benefits cancer patients, can reduce anxiety, depression, fatigue, reduce hospital admissions and length of stay as well as moderate treatment side effects.

Minister for Health and Aged Care Mark Butler said he had spoken first hand with a number of patients who benefited from the centre.

"We know exercise is not only safe for cancer patients, it's known to help them cope better with their condition and their treatment," he said.

"The Kaden Centre delivers custom, targeted exercise programs prescribed by allied health professionals to drastically improve the long-term health outcomes for people living with cancer.

"The government is committed to helping all Australians diagnosed with cancer to access the best multidisciplinary care, as close to their homes as possible."

The centre's practice was based on research by the 2019 Western Australia Premier's Scientist of the Year exercise physiologist Professor Robert Newton and others.

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