TWEED Shire Council is likely to fast track development approvals for the proposed Margaret Olley Centre at the Tweed River Art Gallery.

Tweed mayor Barry Longland said he hopes approval and the commencement of construction work on the expansion, which is also stage three of the gallery, can get underway quickly following the announcement this week of an extra million dollars in funding from the Federal Government.

The council had already been awarded one million dollars from the Margaret Olley Trust to establish the centre in the honour of the late artist.

Cr Longland said he expected construction could start in the second half of next year and the council would be "greasing the wheels" to fast track the development application.

"A report will be coming to council at the next meeting in relation to resolving to accept the money from the Federal Government to get this going," Cr Longland said.

"The DA (development application) is probably still some way off - a good six months, maybe more.

"There will have to be some negotiations with the architect. The wheels will have to run but I can assure you we will be doing what we can to grease the wheels to make them turn as fast as they can."

Cr Longland said the $2 million-plus extension to the gallery would be a local project which was "good news for the construction industry" in the second half of next year.

He said the council had already formally accepted the Margaret Olley Trust's offer of an initial million dollars.