Practice business manager Patricia Turner said the centre had been successful in its application for $547,194.97 from the State Government.

"This grant will enable us to extend our building to eight consulting rooms, two treatment rooms and extend the waiting room and admin space, along with all the equipment to stock it all with," she said.

She said she was happy, because she had convinced herself the application submitted in mid-April would be unsuccessful.

"We are very, very grateful to the government and thrilled to pieces," Mrs Turner said.

"This is going to make a huge improvement to the health care we offer in Creswick and also Clunes and the communities around (here)."

Ballarat MHR Catherine King said the centre was one of 40 projects to receive funding from the third round of the National Rural and Remote Health Infrastructure Program.

"This funding will also . . . (provide) training places for doctors and nurses," Ms King said.

"This is tremendous news for families and residents in our community and means local people can access better quality health and medical services."

Mrs Turner said the centre currently had the expertise to train three-and-a-half medical practitioners, but only the space for one, and will now be able to take on additional registrars when the extension is complete.

She said a design was submitted with the application, which would now be sent to the council.

"(Work will begin) as soon as I can get my building team together and they can get the appropriate permits," Mrs Turner said after the announcement this week.

"I'm hoping we can start late this year or early next year."