The second sign will be located on the Oxley Highway between the new Boundary Road roundabout and the existing highway roundabout to Quirindi and Tamworth.

The decision to approve the installation of a new sign was discussed extensively at Wednesday's council meeting, with numerous councillors voicing their opinion.

Councillors eventually voted for a double-sided sign at this entrance to town, along with an increase in the capital budget allocation to $57,038. This is made up of an existing $35,000 budget and $22,038 from Gunnedah Shire Council's Destination Management Plan Reserve.

A one-sided bus stop sign near Livvi's Place was also considered, but councillors voted to dismiss this suggestion.

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Cr Murray O'Keefe told the NVI the new sign would be "more substantial" than the already-existing sign in Kitchener Park, and that it would be able to display more information and graphics.

"The one in Kitchener Park is past its use-by date and its prime," Cr O'Keefe said.

"I'm really happy that we're proceeding with a sign between the two roundabouts on the south-eastern entrance to town.

"Clearly traffic data has shown us that this is the most logical place to put a big, bright, fresh 'welcome to Gunnedah' sign about what's going on in our community."

The sign will be approximately 8 metres high and over 2 metres wide, visible from up to 85 metres away.

Mayor Jamie Chaffey said the signage was a great way to encourage visitors to stop and spend time in the region.

"We have an exciting calendar of events here in the Gunnedah Shire," Cr Chaffey said.

"Sport, agriculture, art - there really is something for everyone.

"This signage will help us promote these events to a wider audience of travellers, and has an added benefit of keeping the community informed about what's happening around town."

Along with the sign, councillors voted for a further investigation into the potential of a double-sided sign on Conadilly Street in the block between Chandos and Tempest Streets, in either Wolseley Park or Woolworths carpark gardens "should approval for such be so gained".

But Cr O'Keefe said it was frustrating that councillors couldn't make a strategic decision on the purpose of the signs, along with their locations.

"A start is better than nothing but it would be very good if the councillors could all think about the problem we're trying to solve and figure out the best outcome for the community rather than continually seeking another report on the same topic that will deliver the same information," he said."

"I am fatigued on this issue and I'm sure our staff are even more fatigued. We have received four reports on that matter - there is not a good option for a double-sided sign [in that location]."

But Cr Owen Hasler said at the meeting he had no "hesitation in asking staff to come back with another [report]".

"We want a report that reflects what we've been asking the officers to provide," he said.

He believes that a one-sided sign at the bus stop isn't enough, and that it needs to be at least two-sided.

"The best bang for buck is to end up with a sign visible to both sides," Cr Hasler said.