Albury Wodonga Health board chair Nicki Melville said once a new clinical service plan was approved, upgrades could be costed. "With the full support of NSW Health, we've put in a strategic service plan, and that looks at what the new build would contain," she said.

"This would be a rebuild on the site, a purpose-designed acute inpatient facility, state-of-the-art and reflecting current thinking.

"At the moment the plan is a new build with 32 beds - Nolan House currently has 24 - a substantial increase.

"What will happen now is NSW will discuss the plan with us, it may need minor developments, and once that plan is approved it will be costed."

Friends of Nolan House spokesman Les Schmutter said a 33 per cent increase in beds was "definitely an improved figure".

"But I think ultimately it may be found short," he said. "I knew it was going to be a substantial increase in beds, but not what number.

"Mental health is probably the biggest growth area in the medical industry.

"With the current situation, mental health needs are going to become more prevalent.

"Having said that, anything that can improve the scope of what they can do is going to be a big benefit to community in general."

Mr Schmutter hoped an improved mental health unit would "take in other areas we don't cater for adequately".

"If you're a young person in a critical situation you have to go to Box Hill for treatment, and older people could do with better facilities," he said.

Mr Schmutter said projects relating to the outdoor activities area, funded by City2City, and the sensory garden were both tracking well, which was "a positive", but ultimately the unit's redevelopment was overdue.

A NSW Health spokeswoman confirmed an updated clinical service plan had been submitted.

"These documents, endorsed by the AWH Project Control Group, describe acute inpatient mental health services required by the Albury-Wodonga region up to 2031 and support decisions made about infrastructure for AWH," she said.

"A clinical services plan (CSP) provides context on the need for the service and evidence of the benefits that will be realised from investment.

"Its scope includes activity levels and proposed patient and work flows in the proposed service or facility, and the framework of services and resources within which the proposed service will operate.

"The CSP also identifies the policy context, existing gaps, challenges and opportunities for the service, underlying drivers for the change, proposed bed numbers and high level models of care.

"Once the CSP is endorsed by NSW Ministry of Health, a project brief will be developed to confirm project scope and costs, workforce requirements and identify sources of recurrent and capital funding."

AWH chief executive Michael Kalimnios said in a statement the health service was keen to work with the NSW Ministry of Health to "ensure patients have access to contemporary facilities that will support their care".

A provisional budget for the refurbishment of Nolan House is included in the $700 million Statewide Mental Health Infrastructure Program.

Albury MP Justin Clancy says the community can be confident Albury Wodonga Health's inpatient mental health facility will be rebuilt.

His predecessor Greg Aplin put a $20 million figure on the project in 2018, and Premier Gladys Berejiklian was keenly aware of the issue at October's opening of the Brain and Mind Centre.

Mr Clancy said Nolan House was one of his first priorities upon being elected, and that he has kept in contact with AWH chief executive Michael Kalimnios on progress.

"The NSW government gave a level of funding towards planning for the upgrade of the acute mental health facility a couple of years ago, and I understand with Michel's arrival they've [AWH] looked to review the clinical services plan first and foremost," he said.

"At the end of the day, you need to have a clinical services plan that tells you of your needs and projected needs, to allow that to inform more fully a design.

"It's probably taken a little bit longer for that design work to draw towards completion, but at the same time it's a positive."

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Mr Clancy said it was important any infrastructure plans be based off "best practice" provision.

"It's only when you sit down and look at the clinical services plan ... you'll get a sense of what funding will be required," he said.

"One [aspect of the rebuild] is a level of expanded service that meets the growing demand, but also to reflect contemporary care needs for mental health and the appreciation that our sense of best practice has evolved since the construction of the original Nolan House.

"Once they've got a completed design in front of government, that's when I advocate for it to be a priority and I'm certainly continuing to advocate for it to be a priority."

Mr Clancy said if plans for the rebuild were ready when NSW's delayed budget was prepared, he would be advocating for the project's inclusion.

"Obviously we're yet to see the impacts of COVID-19. I don't want to create false expectations, but at the same time, this project is very important for our community and I recognise that and will certainly be making that point," he said.

"I'd love to see the redevelopment proceed as soon as it can.

"Realistically the ED is going to start well before the mental health facility, but that is because the funding is already sitting there with the Victorian government."

The new Albury emergency department is expected to be completed by late 2022.

Important planning for the project is well under way, with design works commencing soon.

"The redevelopment will significantly lift the capacity of the emergency department from 16 to 42 treatment spaces, as well as build a new 16 bed short stay unit, ensuring locals can access world class healthcare when they need it," A spokeswoman for the Victorian Department of Health and Human Services said.

"When complete, the new emergency department and short stay unit will help treat nearly 80,000 patients each year by 2031."