The car will be used by frail and elderly residents needing medical specialists and services as far away as Melbourne. 

It comes weeks after the Red Cross announced plans to scrap its Castlemaine patient transport car and instead rely on vehicles based in Bendigo and Maryborough.

In the days following the announcement volunteer drivers launched a public campaign against the cuts.

They argued the plan was unsustainable.

Volunteer driver Peter Roache said 42 per cent of Castlemaine requests were turned away in 2015, often because the car was already in use.

RELATED | Drivers fume as services slashed

Yesterday Bendigo West MP Maree Edwards announced a new service would be funded by the Department of Health.

She said the government, Castlemaine Health and volunteer drivers would race the clock to have a new service set up by the middle of June, when the Red Cross pulls its car.

“We’d prefer no gap between the end of the Red Cross’ service and the start of the new one,” she said.

However, she said there was still a lot of work to do to get the new service operational, including purchasing a new car and working out how extensive the service would be.

Mr Roache said the announcement lifted a weight off his shoulders.

“My wife and I had our best night’s sleep since early June,” he said.