Dr Haines ascertained the information from Regional Development Assistant Minister Nola Marino during a recent meeting with her.

"I fully appreciate the work required to get local and state governments of all stripes around the table with communities to identify funding priorities," she said.

"I know that our local community leaders have entered into the process with enthusiasm and integrity.

"Many in the community will be disappointed about the delay in signing the deal."

Health infrastructure remains at the top of the list for Dr Haines' hopes for the deal.

"The Regional Deal is an exciting and historic opportunity to encourage investment in our region and have a transformative impact for decades to come," she said.

"My message to Assistant Minister Marino was that a new world-class hospital in Albury-Wodonga should be a high priority in the Regional Deal.

"By 2040, we'll need a hospital capable of handling 150,000 emergency presentations, 40,000 surgeries and 1900 births every year.

"This means we will need a larger hospital, at a single site, with more capacity and more specialist facilities."

The Government announced plans for a Regional Deal for Albury Wodonga in March, 2019 and had intended to finalise negotiations and sign the deal by mid-2021.

An initial $3.2 million for preparatory work was all that was allocated to the deal in this year's budget - an amount originally flagged in 2019.

Albury mayor met with Ms Marino last month and said she was "very keen to progress that deal".

IN OTHER NEWS:

The Assistant Minister did not flag any delay in May, when announcing a $1 million trail improvement would be the first project delivered by the deal.

"Through the deal, which is on track to be signed in 2021, we will see a range of projects emerge to improve infrastructure, support business and tourism investment, and improve education and health outcomes," she said.