Transport for NSW has approved the first stage of creating 2,000 extra car parking spaces at Edmondson Park station.
State Member for Macquarie Fields Anoulack Chanthivong MP said the news was pleasing after the community had campaigned long and hard for the infrastructure project.
"For too long this state Liberal Government continued to ignore the needs of local commuters, but our persistence has started to pay off," he said.
"I will be monitoring very closely that construction works starts this year and is completed by mid-2021. I also want to thank the local community for their support and persistence in joining our campaign to deliver more infrastructure for our growing community".
The state government promised the car park nearly two years ago.
Labor says the extra car parking spaces have been promised because of pressure from its lobbying on behalf of local residents.
The announcement by Transport for NSW says that construction will begin over the next few months.
Transport for NSW says during construction, the existing southern car park would be closed to allow construction of the multi-storey car park to be completed safely.
Alternative parking will be available for the community to offset the unavailable spaces and more information will be provided shortly, a statement from Transport from NSW said.
Labor says it is sceptical the project would start on time.
Liverpool City Councillor Nathan Hagarty said it was pleasing the state government listened to the needs of locals.
"Finally, the NSW Government has listened to the concerns of our community and their representatives after numerous delays and changes to plans," he said.
"It's been long enough, and we've suffered too many delays.
"While this is wonderful news for the community, I want to make sure that the NSW Government now delivers on this latest announcement and the rest of its promises for Edmondson Park."