A Rural Fire Service investigation determined that the State Mine fire, near Lithgow, was started by an ordinance explosion during a military training exercise.
Blue Mountains Mayor Mark Greenhill said the recovery effort was crucial for many families affected by fire in the area.
"I just want to see people's lives rebuilt as quickly as possible," he said.
Earlier today, the area's emergency recovery coordinator had a meeting with Captain Roger Parr from the RAAF about an offer from the military to help meet that need.
"Our people are good at helping to clear up and we can provide plans and that's what we've been discussing today to assist with the task," Captain Parr said.
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The offer has been viewed by some as a peace offering from the military over starting the blaze.
"I think it's just a wonderful gesture given what happened with one of the fires in the mountains," Mayor Greenhill said.
But military officials said their offer has nothing to do with the fire.
"We've been responding since the fires started. Straight away we had teams from the ACT, Riverina, Glenbrook - so 'no' is the answer," Captain Parr said.
The State Mine fire has so far consumed more than 50,000 hectares and continues to burn.
