The rail corridor between Macarthur and Glenfield in Sydney's south west is set to be transformed into a new urban precinct that will see high rise, retail and employment areas created in some of Sydney's more run down suburbs.

The plan, unveiled by Planning Minister Rob Stokes on Sunday, outlines seven station precincts from Glenfield to Macarthur which will be revitalised with increased population density, and with more thought being given to the community and transport needs of the area.

An artist's impression of the expanded Macarthur Square shopping centre in Sydney's Campbelltown.

For example, the plan, which will be released for public comment, includes cycleways and walking paths, better bus transport, upgrades to libraries and a new primary school in Campbelltown.