Multicultural Council of Wagga chief executive Belinda Crain said the new target of 50 per cent of refugees and humanitarian entrants being directed to regional areas would need an increase support to be successful.

"The government will need to have a consultation about what is here and what is needed, or it is not going to work," she said.

"When a person comes from a refugee background, once they are in Australia they can't be told they have to stay somewhere.

"If the services aren't there and they don't feel supported, they will go back to the major cities."

Immigration Minister David Coleman announced on Friday that the "proportion of new refugees and humanitarian entrants settled outside Sydney, Melbourne and Brisbane" will rise from a 40 to 50 per cent target by mid-2022.

Wagga is one of 21 regional areas to be part of the policy.

When asked about the number of new refugees that Wagga could expect, a Department of Home Affairs spokesperson said a "decision on the settlement of humanitarian entrants in particular regions to support the 50 per cent target will be made in due course".

"Wagga has been a successful regional settlement location for many years, recently settling a significant number of Yazidi humanitarian entrants," the spokesperson said.

According to the Multicultural Council, Wagga's indicative intake of refugees last year was 150 but the actual number turned out to be 380. Next's year's indicative intake has been set at 240.

Ms Crain said rural and regional areas "created a great opportunity" for refugees "but when you are settling larger numbers into smaller areas, you also need to look at resources and the capacity of existing services".

"I would be hoping (the government) will look at what is actually here and what would be required," she said.

A Home Affairs spokesperson said the department would work with state governments and the broader community "when considering the settlement of humanitarian entrants in a particular region".

"The department considers the specific needs of the individual, the adequacy of local infrastructure, availability of settlement services and suitable accommodation, employment opportunities and a welcoming community," the spokesperson said.

Riverina MP Michael McCormack said he was "sure any refugees coming to the city will be broadly welcomed".

"You only need to look at the recent intake of Yazidi refugee families who came here in 2016," he said.