The NSW government has confirmed it will construct a Western Sydney Metro station in the inner-Sydney suburb of Pyrmont.

Metro stations at Westmead, Parramatta, Sydney Olympic Park, North Strathfield, Burwood North, Five Dock and the Bays Precinct were last year confirmed, while a feasibility study into Pyrmont was established.

The government on Friday elected to move forward with a Pyrmont station, but is yet to confirm the precise location.

Construction on the metro line – which promises to deliver a 20-minute commute from Parramatta to Sydney CBD – began last month.

The location of the CBD metro station is yet to be confirmed.

Transport Minister Andrew Constance on Friday said the establishment of a Pyrmont metro station would create 500 direct jobs and also reduce demand on the Dulwich Hill light rail line by 10 per cent.

“Modelling also predicts this will be one of the busiest stations on the Sydney Metro West line,” Mr Constance said in a statement.

The metro line is expected to open by 2030.

Mr Constance on Friday said some commercial property owners that financially benefit from the Pyrmont station’s construction will be required to make annual contributions to offset construction costs.