Wonnarua Nation Aboriginal Corporation (WNAC) has received a $6.279 million grant from the NSW Government to facilitate the development, which will be built on land provided by Hunter Valley tourism and hotel entrepreneur Dr Jerry Schwartz.

The Madoo Museum will house and showcase a rich collection of local Indigenous artefacts currently stored in various offices around the region.

In addition, the renowned Morrison Collection - including canoes, stone axes, clubs, spears, boomerangs and hundreds of other artefacts from the Hunter Valley - will be relocated from the Australian Museum to the dedicated local site on Wills Hill Road (near Crowne Plaza Hunter Valley, which is owned by Dr Schwartz).

The cultural centre would include interactive participation through art shows, boomerang techniques, and a bush tucker cafe.

Dr Schwartz has been working with WNAC on the concept for about three years.

The corporation's CEO Laurie Perry said that returning the Morrison Collection to the Hunter region was a massive outcome for the local Aboriginal population.

The collection is named after Singleton-born newspaper owner, Alexander Morrison, who collected over 120 Aboriginal cultural objects at the turn of the 20th century, many coming from the St Clair mission, where Wonnarua Aboriginal families lived at the time.

One of the residents of St Clair was Sarah Madoo (Laurie Perry's great-great grandmother) , who lived to 106, and was believed to be the oldest Aboriginal person in Australia when she passed-away in 1941.

"This is a massive day for the Wonnarua Nation to have confirmation that the Morrison Collection will be coming home to the Hunter," Mr Perry said.

"The creation of the Madoo Museum Cultural Hub will not only honour our people's heritage and culture, it will provide the opportunity to grow local Aboriginal tourism and employment."

WNAC chairman Lee Hinton echoed Mr Perry's sentiments: "It will showcase our culture and ingenuity, and will leave a lasting legacy for future generations," he said.

The grant, which came from the Department of Regional NSW, was announced by Member for Upper Hunter Michael Johnsen on Tuesday.

Mr Johnsen said the project will give visitors the chance to experience the rich history and culture of the local Indigenous people, enhancing tourism capabilities for Pokolbin, Cessnock and the wider Hunter region, and will provide jobs in the local community.

Dr Schwartz welcomed the funding from the government and said the museum will help preserve the heritage of the Wonnarua people, provide an opportunity for the wider community to share and experience their culture, and will become a "focal point" for cultural tourism.

"We envisage that the museum and cultural centre will attract Indigenous, school and special interest groups to the region, and we will look to increase accommodation options at my Hunter Valley property to cater for them."

Cessnock mayor Bob Pynsent congratulated the stakeholders on receiving the grant, and said it was great to see their dream achieved.

"This centre will fill a massive gap in the local tourism market, it will be unique to the area," he said.

Dr Schwartz is also proposing to build a revolving art gallery called Hart's Art, which will house a major exhibition of paintings by Dan Hart depicting the plight of Aboriginal peoples in Australia.

He is also working with Newcastle's Awabakal Local Aboriginal Land Council to establish an Indigenous cultural centre in the former Newcastle Post Office, which he acquired in 2018.