UNE Reference Group chair Mitch Hanlon welcomed the news that a years-long funding dispute between state and federal governments over the University of New England's (UNE) Tamworth campus had finally been resolved.

He said the reference group had yet to see building plans, or even have a site confirmed for the new development.

Construction on the $60 million project is due to start within months.

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Mr Hanlon suggested UNE hold the same sort of community meeting they hosted in August, to update the community on progress and also give people an opportunity to have a say on designs.

The entire Woolworths end of Peel Street could be converted into a "university precinct" as part of the campus project, he said.

"My thoughts are that Tamworth Central needs to be at the velodrome. That's our hub," he said.

Tamworth MP Kevin Anderson announced on Wednesday that the state government would pour $26.6 million from its Growing Local Economies fund into the project.

State government committed $26.6 million on the project in 2019 - on condition of direct federal government support.

But the Commonwealth refused to directly fund the project in three consecutive budgets, including the 2021 budget.

The federal government offered tens of millions in broader support for the university, but the state government wanted the Commonwealth more heavily invested in the specific second campus project.

The dispute dragged on so long local advocates expressed concern that the entire scheme could fall over if the governments couldn't agree.

On Wednesday the governments finally did exactly that, after confirmation that the university could assign Commonwealth funding received under the federal government's Job Ready Graduates reform directly to the project.

Mr Anderson said he was "thrilled" that the project could now move into a delivery phase.

"Our city needs a vibrant new campus with multi-purpose facilities to support teaching, research and collaboration," he said.

"The construction of the campus will create new jobs in our region and, once built, will educate a workforce and drive innovation in sectors critical to the future growth and prosperity of Tamworth and wider region."

UNE planners haven't waited for government, and construction is due to start on the project in 2022 - but there is still no confirmed site for its central campus building.

In August, University of New England vice-chancellor Brigid Heywood flagged they were unlikely to use the velodrome site offered by Tamworth Regional Council for education facilities.

Instead, she said the land gifted from Tamworth Regional Council could be used for student accommodation, retail spaces or a study centre.

Reference group member Richie Thornton said the designs were due to go to government by November.

"Part of the whole funding is conditional, really, on UNE having completed plans by the end of November," he said.

"They're not just going to hand out $26.6m, they want to see what it's going, they're going to spend it on. That it's ready-designed for the site and so on, that is to be finished by the end of November."

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Group chair Mitch Hanlon said the entire community should get a look at the plans before they go to the development application process.

"What we want from the building is this: it needs to be iconic; it needs to make a statement for our community that the university is accessible," he said.

"It needs to set an architectural standard. Blandness is not something we want to see.

"[It needs to] integrate with community, so the community feels that they can be part of that building. Public spaces so you can flow in and out of the building. Integrate too with that Peel River riparian area, which to me should should all be part of a beautification [project] anyway."

Deputy Prime Minister Barnaby Joyce said the deal was "news that many at UNE and in Tamworth have been waiting for".

"I am absolutely delighted to be part of the Liberal and Nationals Government that will finally deliver a university campus in the city of Tamworth," he said.

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"This has been a project I've backed for a long time, and I would like to pass on my thanks and congratulations to Vice-Chancellor Professor Brigid Heywood and Nationals Tamworth MP Kevin Anderson for all their work in getting the project across the line.

"This campus will mean new jobs, new investment, new services and new infrastructure for the city."

Deputy Premier and Minister for Regional NSW Paul Toole said the new campus would mean Tamworth residents can study close to home.

"I commend the collaborative approach adopted by UNE, the NSW and Commonwealth governments and Tamworth Regional Council to progress this important project," he said.

The campus is expected to cost about $60 million, thanks to advanced new robotics education and research facilities.

It will be delivered according to a hub and spoke model, with students often learning within businesses and other places of work, rather than a formal university campus.

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