The tree will be installed in Brock's Court and the lighting ceremony will be held during the Two Rivers Arts Council (TRAC) Christmas Markets on Saturday, November 21 at 7.30pm.

Earlier this year Gunnedah residents were asked to vote for their preferred colour scheme. The new tree will be adorned with the chosen green, red and gold decorations.

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Gunnedah mayor Jamie Chaffey said the lighting of the tree fostered a sense of community spirit.

"The installation of a community Christmas tree is part of Gunnedah Shire Council's Invigorate Gunnedah COVID-19 recovery package, targeted at bringing vibrancy to our CBD," Cr Chaffey said.

"A big, bright Christmas tree in the CBD brings cheer to the community and will act as a beacon for those visiting Gunnedah during the holiday season.

"I encourage those attending the markets next Saturday to come and observe the tree lighting up for the very first time, marking the beginning of an annual tradition."

The TRAC Christmas Markets will be held on Saturday, November 21 from 3pm to 8pm at Wolseley Park. The tree lighting will commence at 7.30pm within Brock's Court.

TRAC have a COVIDSafe plan in place for the markets and those gathering for the tree lighting should observe social distancing.