The new internment area will be 750 square metres and include 156 new burial plots.
"We would like to thank the community in advance for their patience as we undertake this upgrade what is an important community facility," Cr Pynsent said.
Preliminary works are already underway at the site, with major construction works scheduled to start in late April.
Increasing demand for cemetery space is an issue that many metropolitan areas face.
It has led to alternatives options like leased plots being considered, something Cessnock council has been quick to rule out.