The plans released by Port Stephens Council show the hub will be located off The Close in the shopping precinct of Raymond Terrace.

It includes three new taxi parking spaces, a community bus stop and six new accessible carparks. The plans also show landscaping work, two new weather shelters for waiting commuters and improved lighting.

"This area was targeted and the facility designed to increase public safety and provide easier access to services for people with special accessibility needs," council civil assets engineer Michelle Viola said.

The upgrades will see the flow-of-traffic change and create more space for pedestrians to safely walk from William Street to the Centro shopping centre.

"The proposed walkway will make the area safer by creating a single pedestrian crossing, rather than the current two crossings," she said.

Work will start in December to clear the site while the majority of the project will be completed early next year.

The site was chosen in consultation with taxi service providers, Transport for NSW, Port Stephens Local Traffic Committee, Port Stephens Council and Raymond Terrace Business Chamber.

The money for the project came from a $100,000 federal government grant, while the remaining $64,784 were contributed by the council.