Construction of the 4.4km four-lane Newell Highway bypass should start in the first half of 2005 and take roughly 12 months to be completed.

It will run along Gosport St, crossing the Mehi River on a new road bridge - north of the existing railway bridge - and pass east of the Moree racecourse.

The Roads and Traffic Authority estimates the bypass should reduce the heavy vehicle movements through the town centre by more than 90 per cent.

The frequency of truck movements along Balo and Gosport streets should change from one every minute to one every 13 minutes.

While the State Government's roads and traffic, and planning departments yesterday gave approval, the Australian Government will fund the total cost of the bypass.

With approval as the final obstacle overcome the RTA can now buy the remaining properties in the path of the bypass, demolish houses it has already bought and relocate powerlines along the new highway alignment.

Fifteen homes and five businesses have made way for the bypass.

Deputy Prime Minister and Gywdir Federal Member of Parliament John Anderson said it has now been seven years since the first bypass funding was approved and two years since the Environmental Impact Statement was completed.

"The people of Moree, the road industry and all users of the Newell Highway have waited long enough for this project," Mr Anderson said.

"We all want to see bulldozers on the ground and a quality road corridor taking highway traffic safely and efficiently through Moree."

The Australian Government has spent $6.4 million on the project to date, set aside $20 million for work in 2004-05 and a further $8 million in the next financial year, Mr Anderson said.

"The project will generate more than 100 jobs during construction and inject $7 million into the local economy, while signposting on the diverted highway will indicate prominently the Moree shopping precinct, motels and eateries," Mr Anderson said.