The deal between the two groups was the clincher in Albury Council back-flipping and providing $186,200 in funding in the 2017-18 budget.

The cash boost will allow the men's shed to start detailed planning for a 27m x 18m shed to be used as a workshop, members area with library facilities and kitchen, renovated office space, additional toilets, upgraded three-phase electricity supply and landscaping.

Subject to development approval work could start in April next year with an anticipated construction period of at least 12 months.

The Albury Women's Shed group has been formed in recent times and has been on the lookout for a base.

It will establish a temporary home within the former Woolstore building in Smollett Street.

Thurgoona Men's Shed president Bruce Dyce said the two groups would remain separate identities.

"They will be using the facilities when we aren't," he said.

"Those details are still to be worked out."

But in a late submission presented to council, the men's shed stated: "(The women's shed) will occupy the premises on Wednesdays and will have full and unfettered use of all the buildings and equipment free of charge.

"The interests of both parties will be protected by a sub-lease agreeable to all.

"Minor costs such as electricity and water will be shared on a pro-rata, agreed upon basis."

The men's shed initially applied for $216,200 towards the total project cost of $298,500 in the 2017-18 budget before being altered to $180,100 over two financial years on the condition a further $30,000 was raised by the group.

The revised funding proposal was put on hold for 12 months and the men's shed urged to collaborate with similar groups.

But in striking a deal with the women's shed council agreed to provide the $186,200 in the coming financial year so a start could be made.

The men's shed is setting up on land in Corrys Road which was the subject of a land swap between council and Mother of God Brothers.