Stockton beach would be eligible to receive funding from a $50 million coastal rehabilitation fund that a federal Labor government would establish, Newcastle MP Sharon Claydon said.
Ms Claydon said Stockton would be ideally suited to take advantage of the funding, which would need to be matched by local and state government contributions.
"Stockton is so well placed to get the full benefit of that fund. This is a community that has already worked through so much of those planning and research issues," she said.
A $295,000 joint funding commitment between Newcastle City Council and the state government was announced last August to assist in the development of a viable and long-term solution for Stockton's erosion woes.
The funding will be used to develop a Coastal Management Program for Newcastle's entire coastline.
Stockton resident and engineer Keith Craig said the community had been keenly following the progress of the recently completed $4.1 million sand shifter project that pumps sand from near the mouth of the Myall River along a two kilometre pipeline to erosion hot spots on Jimmys Beach.
The system deposits sand at 10 points along Jimmys Beach and Winda Woppa twice a year.
"It's a possibility [ that a similar solution could be used at Stockton] because one of the sources of sand for beach replenishment is up at North Stockton, up along the bite," he said.
"Certainly a pump system that could bring sand back down is a viable option.
"First off there would need to be a big dump of sand from dredging offshore. But for a yearly top-up, a sand shifter would certainly be a viable option."