The Prime Minister has announced the National Broadband Network will be rolled out to Wollongong.

The city south of Sydney will be the largest regional centre to join the NBN so far.

Julia Gillard says super-fast internet will create a significant number of jobs, offsetting some of the recent losses at BlueScope Steel's Port Kembla operations.

"This is good news for the long-term economic future here," Ms Gillard said.

"It's also good news because people will be employed in the construction and around 500 jobs will be created at the peak of the construction of the NBN in the Illawarra."

The NBN was switched on in the nearby communities of Kiama Downs and Minnamurra in July, and will now be extended north to Dapto and Wollongong.

The Prime Minister also used her Illawarra visit to announce $25 million in pre-construction funding for the Maldon to Dombarton railway line, which will link Port Kembla to south-western Sydney.