Roads Minister Duncan Gay has confirmed negotiations are underway between the State and Federal Governments over the F3-M2 road link.
Mr Gay said the discussions on the funding gap for this important road had been friendly and were close but were not there yet.
The NSW Liberals and Nationals Government received an unsolicited proposal from shareholders in the M7 motorway (Transurban, QIC, CPP) to build the F3-M2 link.
Mr Gay said this was a good project which everyone wanted to see done.
The NSW Government has been involved in ongoing discussions with the Federal Government and negotiations with M7 shareholders, but more needs to be done to reach a final agreement.