N.J. Stat. § 27:7-15
The commissioner may enter into contract with a municipality, the streets or roads of which will form proper connections with a state highway, for work which will place such streets and roads in a condition in keeping with the nature of the state highways approaching and leaving the municipality.
A municipality may, when it deems it advisable, improve a part of a state highway lying within the municipality, such part lying outside the limits of the area of the highway improved or proposed to be improved by the commissioner or by the county with the consent and approval or the commissioner.
In either case the municipality shall proceed in the same manner as for the making of a "local" or "general" improvement, as defined by section 40:56-1 of the title Municipalities and Counties, except that advertising for or receiving bids for the making thereof shall not be required.
N.J.S. § 27:7-15