The state budget will provide $11.5 million to expand and upgrade the birthing suite and associated operating theatres at St George Hospital.
The delivery suite and birth centre will be co-located in the project.
No other details have been provided at this stage.
The project is part of a $157 million state-wide Parents Package to benefit expectant mothers, new parents and newborns.
Premier Gladys Berejiklian announced the measures ahead of the state budget, which will be delivered on Tuesday.
The funding will boost the number of midwives and family health nurses, invest in testing and treatments for children’s diseases, and provide practical and emotional support to parents.
New parents will be given a “Baby Bundle”, which will include “essential and every day care items, such as a baby safe sleeping bag, room thermometer, wipes, nappies and educational materials”.
One hundred more midwives will be employed across the state, at a cost of $9.3 million, bringing the total number of midwives to 3020.
Additional nurses will expand the postnatal visit program so new parents can choose to have an additional home visit by child and family health nurses in the first months of their child’s life.
This includes partnering with the early parenthood service Karitane to employ additional nurses to provide virtual home visits.
The budget will provide $5 million for technology and staff to advance paediatric precision medicine to help treat childhood cancer and other genetic disorders.
Other measures will provide tailored assistance in regional areas, enhance systems to support safe and timely transfer of pregnant women who require higher levels of care and provide increased specialist perinatal and infant mental health services.
NSW will be the first state to expand screening to include the life-threatening disease Congenital Adrenal Hyperplasia.
This comes on top of Spinal Muscular Atrophy (SMA) and Severe Combined Immunodeficiency (SCID) being added to the newborn bloodspot screening program as part of a research initiative coordinated by Paediatrio.
The booklet Thinking of Having a Baby, which offers important advice, including pre-pregnancy genetic carrier screening, will be updated.
Support will be provided to the Stillbirth Foundation campaign to encourage pregnant women to sleep on their sides to decrease the chance of stillbirth.