It was about eight months ago when an $8.3 million upgrade of the controversial road was given the green light for a long-awaited coating of bitumen along its full length.

A $5.8 million grant from the federal government was added to the $2.5 million from Wagga City Council to seal the five-kilometre road.

Wagga council's general manager Peter Thompson said the council always intended to contributed $2.5 million towards the upgrade and now it has found a means to source the money.

"The funding is sorted and the surveyors are out there right now," he said.

Mr Thompson said the project will bring the road up to standard and maintain the safety for the community that frequently uses the road.

"So we aren't looking to build a new freeway out there. It is something between what is there right now, which is not good, and something that is safe and serviceable and we won't have to go back there in the near future," he said.

The city's councillors endorsed applying for Low Cost Loans Initiative funding towards the Dunns Road upgrade project at Monday night's council meeting.

The state government's loans initiative provides a 50 per cent interest subsidy on projects that meet the criteria under their program.