The federal government considers that Tamworth technically has an oversupply of eye doctors. Because Tamworth has three, the city is not classed as an 'area of disadvantage', and one of the doctors can't get a permanent Medical Provider Number (MPN).

That's because MPNs are set according to postcode, not need.

It's a rule that makes sense in metropolitan areas where distances are shorter.

But local doctors say they serve patients from an area many times the size of the Tamworth Local Government Area and a population of about 220,000, according to Councillor Juanita Wilson.

The doctor was initially due to lose his position this week, but was given reprieve just days before Christmas.

"He's been given a stay of execution really because of the lobbying by the council, myself and Barnaby Joyce. Otherwise he would have to leave," she said.

"It's really difficult to get specialists to come to regional and rural areas for all sorts of reasons. The doctor with this issue is a doctor who loves Tamworth, wants to make his life here, he's qualified, he's become part of the community in many ways. He wants to remain here and it's the Federal Government who's saying no you can't."

An alliance of local leaders, including Cr Wilson, who've been furiously lobbying Federal government for a change in the policy now have until June to win reform.

MP Barnaby Joyce said the rule was both absurd and unfair for regional areas.

"While there are towns without any doctors I don't see why places like Double Bay can have multiple," he said.

"I've fought for and got the extension for the ophthalmologist in Tamworth, the absurdity of it was that doctor could go to Manly, but couldn't stay in Tamworth.

"I think these issues should be based on the needs of towns and cities such as Tamworth, not on postcodes which are arbitrary."

Cr Wilson said the city currently has a critical mass of ophthalmology which allows for 24-hour emergency service, which she said is often vitally important in saving people's sight in a crisis. Without the third doctor, that service would cease.

"My hope is that the temporary stay is because the situation has been realised and something's going to be done about it," she said.

"One would hope that common sense and equity of government would allow regional areas to have the same level of service as metropolitan areas where possible."

In October Tamworth Regional Council asked state and federal government health ministers to review the National Medical Workforce Strategy, which contains the rule.

Tamworth had four eye doctors until this month - one returned to New Zealand.