The federal and New South Wales (NSW) governments in Australia have agreed to jointly invest A$1bn ($687m) to improve road infrastructure in the state.

Around A$398m has been allocated for road safety projects in regional areas, supporting 950 direct and indirect jobs.

Another A$382m will be awarded to local councils to upgrade roads, while A$240m will be invested to fix 11 congestion hotspots around Sydney.

These two programmes are expected to support 3,500 and 1,000 jobs respectively.

The federal government has committed A$451m, while the NSW Government will contribute the remaining A$569m.

Australian Prime Minister Scott Morrison said: “Partnering with state and territory governments to invest in more major infrastructure projects across Australia is a key part of our JobMaker plan to rebuild our economy and create more jobs.

“This funding injection means we have brought forward or provided additional funding of more than A$2.7bn across New South Wales in the past eight months.

“This package builds on the fast tracking of A$570m for infrastructure in New South Wales, which we announced last November, locking in priority upgrades that will bust congestion, increase productivity, improve safety, and boost jobs at a time we need it most.”

NSW Premier Gladys Berejiklian noted that the investment will help in improving road safety and reduce journey times in the city and across the region.

Earlier this year, the NSW Government revealed plans to introduce extended clearways on Blaxland Road to reduce congestion on Sydney roads.