The first stage of a controversial sports precinct plan in central-western New South Wales has been given the green light, although some believe the site should be reserved for parkland. 

The Western Regional Planning Panel has approved a proposal to carry out earthworks, clear trees and demolish buildings on part of a former golf course at Orange. 

The Orange sporting precinct plan includes stadiums, playing fields and car parks at the Bloomfield precinct, between an existing sportsground and the Orange Health Service. 

Local Mayor Jason Hamling said he was "over the moon" with the progress so far.

"This is a project that I've been heavily involved with and this was part of my election campaign to get this sporting precinct started and finished," he said.

The project was initially earmarked for a greenfield site off the city's bypass, but it was later deemed inappropriate by the city's council, and the proposed location was moved to the current Bloomfield precinct. 

The decision prompted an outcry from some members of the community, who warned the site should instead be preserved as parkland. 

NSW Health, which owns the adjacent hospital, along with some medical professionals have opposed the location citing potential access issues during major sports events. 

"The people who have opposed this project have quite a lot of arguments based on best-practice planning, environmental issues, climate change issues, the public amenity, public use of open green space."

Mr Hamling said measures will be taken to ensure there are minimal traffic issues near the hospital. 

"Most of the traffic will be on the other side, if there's a major event on this side we would be saying it would be buses only coming out here and light traffic."

Cries of pork-barrelling

The precinct will be funded by the NSW government, which committed $25 million to the project during the 2019 election.

Former premier Gladys Berejiklian sparked a backlash when she promised the funding on the proviso that coalition candidate Kate Hazelton defeated the incumbent Orange MP. 

While the contracts for the first round of earthworks have been put out to tender in anticipation of this approval, the Orange City Council said development applications for the precinct's infrastructure will be dealt with later in the process.

The earthworks contract is expected to be awarded at a council meeting in March. 

ECCO said it would like the project to be examined by the newly elected council. 

"If there were enough people who are opposed to it on the new council maybe there's a possibility it could be a renegotiated, perhaps a modification of the plan, perhaps relocation."

The ABC has contacted NSW Health for comment.