The lighthouse has fallen in to disrepair over the past years and has become a target for vandalism.

Minister for Lands Tony Kelly announced the funding at the site last week with Mr Kelly admiring the lighthouse up close.

"It is one of the most ornate and picturesque lighthouses I have seen," he said.

"Hopefully this funding will be able to set the lighthouse on the path to restoration."

The $60,000 will be used to repair rust and repaint the well-known historic landmark.

"The restoration of the lighthouse is part of our plan to restore the 14 lighthouses in NSW," Mr Kelly told the Times.

"We hope to restore the lighthouses and work out an efficient maintenance plan for them."

Member for South Coast Shelley Hancock supported the move and said she was happy to see the State Government finally respond to community demands.

Mrs Hancock told the Times that following extensive representations to the Minister for Lands on behalf of many concerned residents initial works will finally be undertaken on the lighthouse.

"The Warden Head Lighthouse is an iconic structure on the South Coast, which served mariners for 136 years and residents and tourists will now see it returned to its former glory," Mrs Hancock said.

"The Warden Head Lighthouse is one of two wrought iron Lighthouses in New South Wales the other standing tall at the end of the breakwater in Wollongong beautifully restored while Warden Head had become a rusted eye sore."

"This time representations to the State Government has not fallen on deaf years and the Minister for Lands has announced that painting of the Warden Head Lighthouse will commence this financial year.

"Warden Head Lighthouse is a icon of the local coastal community and the residents of Ulladulla and visitors to the area will now see it stand proud," she said.

"I thank all residents for writing to me on this matter."

Work on the lighthouse is expected to be undertaken early next year and will take six to eight weeks to complete.