Australia Post has confirmed land at the corner of Macauley and Ochtertyre Sts has been earmarked for the project.
Specific designs for the Deniliquin facility have yet to be released, but will be similar to others being delivered across the country.
Construction of the new post office is expected to start early next year, and be operational by the end of the year.
The Deniliquin project is one of six being progressed by Australia Post in what is described as a multi-million dollar investment.
The other developments will be delivered in Tumut, Leeton, Casino, Forbes and Byron Bay.
“These sites will bolster capacity to support parcel volume growth and improve service across rural and regional communities,” the company said.
“These purpose-built facilities are designed to boost parcel processing capability - handling between 900 parcels to 2,200 parcels per day - and enhance service across rural and regional communities as well as improving operational safety and efficiency.”
Sustainability is a key focus of the expansion, with all sites featuring 50kW rooftop solar power generation, and a number also investing in rainwater harvesting and EV charging capability.
“Team members will be relocated from the current Deniliquin site to the new facility,” an Australia Post spokesperson said.
“This will free up space at the Post Office allowing for greater operational efficiency.”
Australia Post general manager network development and support services Shane Plant said the investment “reflects Australia Post’s commitment to improving services for regional communities across Australia”.
“In New South Wales, we’ve seen online purchases increase by 2.8 per cent year-on-year, with data indicating that 82 per cent of New South Wales households are now shopping online,” he said.
“As regional areas increasingly depend on eCommerce due to fewer physical retail offerings, these purpose-built sites will enable Australia Post to meet the growing parcel demand in these regions.
“Beyond speed and efficiency, we’re focused on providing safer workplaces for our team members and building environmentally responsible infrastructure that can serve communities well unto the future.”
Deniliquin’s new Post Office is expected to span 1,335m², with construction starting early 2026.
As part of this regional expansion a brownfield site has also been secured in Narrandera. Further brownfield sites in Cooma and Ballina are in lease negotiations.