Hunter New England Health will fund an additional five full-time equivalent nursing positions in the emergency department at John Hunter Hospital.
The hospital's acting general manager, Leanne Johnson, said there had been an "increase in the volume and severity of patients presenting" to emergency.
"We are committed to providing safe and appropriate care, and have been in discussions with nursing staff about increasing staff numbers in response to this increase in patient numbers and acuity," she said.
"While it's important to note we have already enhanced nursing and medical staff in the ED over the past 18 months, we have now committed to funding an additional 24 hours of frontline nursing staff per day, and recruitment for these positions is underway."
Nurses and Midwives Association branch vice-president, David Pfanner, said staff had threatened industrial action campaigning for the extra positions.
He described it as an "enormous win for the nurses" and an "enormous win for the people of Newcastle".
"It's in accident and emergency so it means patients won't be waiting as long, they'll be looked at much quicker," he said.
"It's much safer for the patients and everybody."