The first major milestone in the redevelopment of the hospital - the ambulatory care hub is set to be completed next month.

The hub will host oncology services, outpatient specialist spaces, a gym and more.

A spokeswoman from Murrumbidgee Local Health District said the tender for the next phase of work was expected in the second half of the year.

That tender will cover "early and enabling" work for a non-clinical support building, moving the pediatric ward to free up space for the future hospital and demolition of redundant buildings.

"In the coming months, the project team will again engage with local stakeholders as part of the review of the schematic design," the spokeswoman said.

Design development and planning approvals are also being sought for an acute clinical services building, which will be built to the north of the existing hospital.

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That building will host an emergency department, aged care and rehabilitation beds, operating theatres, medical imaging and will link to the St Vincent's Community Hospital.

Construction workers are also working to strict physical distancing measures.

"Our contractors have undertaken practical steps to implement social distancing and practise good hygiene on worksites consistent with the latest NSW Government advice to protect workers and our communities," a health infrastructure spokeswoman said.