Investec Bank (Australia) Ltd will fund and develop the $600 million project, comprising 127 wind turbines capable of annually generating up to 900,000 megawatt hours of electricity, or enough to power 160,000 homes.

The proposed 13,000 hectare site, 25km south-east of Merredin, comprises mainly cleared cropping and grazing land.

Investec project manager, Mark Headland, welcomed the Council decision, saying it was another positive step in a comprehensive process that would ultimately bring considerable benefit to the central wheatbelt and the whole of WA.

"The Council and local community have been very supportive of the project from the outset and we commit to continue the two way consultative process and due diligence which has helped us reach this point," he said.

Merredin Shire Council chief executive officer, Frank Ludovico, said there were excellent opportunities for local business involvement during the wind farm's construction phase.

The project's construction team is planning a forum in Merredin for local sub-contractors to register their interest in the project, probably in mid-October.

"We believe it's a very exciting project for the community going forward," he said.