The Campervan and Motorhome Club of Australia (CMCA) submitted the development application, and councillors subsequently approved this at the December council meeting.

If CMCA finds the funds, the camp grounds will be located near the Namoi River at 107-109 Chandos Street.

The project also has significantly less conditions than originally planned, after CMCA's business development officer Sean Constable made a presentation prior to the meeting, asking for some to be removed.

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The not-for-profit organisation no longer has to submit a site parking layout or a detailed landscaping plan, and don't have to provide the minimum 34 car parking spaces onsite or have to use an excessive amount of "hard stand" areas.

Councillors voted to remove these conditions, as Mr Constable said some of them would have "imposed a financial burden" which could've resulted in the project not going ahead.

"Given we're a not-for-profit club we've got limited financial resources," he told ACM.

"We've had projects that didn't go ahead because the council wasn't flexible on how the park is designed."

He said he was pleased he project would now move to the next stage, but hoped the CMCA board allocated funds to the park.

"Hopefully we get approval to proceed then engage with contractors and begin the works. Usually that's a four-five month process for that to happen," Mr Constable said.

"Hopefully somewhere in the middle of next year we'd be good to go."

Gunnedah mayor Jamie Chaffey said the new park would promote Gunnedah to the CMCA's large member base as a favoured destination.

"The park supports Gunnedah Shire Council's destination plan by providing infrastructure and services that grow the tourism sector and improve the accommodation base of the shire," Cr Chaffey said.

"I look forward to having more visitors staying in town where they can enjoy our fantastic local shops and restaurants."

As part of the proceedings, council will now submit a proposal to the Department of Planning, Industry and Environment for a Gateway Determination permitting the park to be used by caravans, in addition to stand-alone motor homes.