More than $700 million in funding for Indigenous work programs has been welcomed by the Coalition of Peaks.

The funding announcement comes as the government prepares to release its latest Closing the Gap report.

The investment will go towards reforming jobs programs in Central Australia to replace the scrapped community development program.

The PM said the new Remote Jobs and Economic Development Program (RJED) will help close the gap in employment outcomes by creating 3,000 jobs in remote Australia.

Coalition of Peaks acting lead convener Catherine Liddle told the ABC the funding change addresses the priority reforms set up in the closing the gap refresh.

“Those jobs will be designed by communities themselves so fundamentally different from how CDP worked. This money will go directly towards those communities so communities can say these are the jobs that we need, these are the hours that those are worked and this is what will make a difference to our communities.

It is a fundamental shift in landscape.”