The University of Newcastle has welcomed the NSW Government's development approval for the new Hunter Medical Research Institute (HMRI) building.

The $90 million research facility will house 400 medical researchers from the University of Newcastle and Hunter New England Health. The building, to be completed in the first half of 2012, will be located on the Rankin Park campus of Hunter New England Health.

University of Newcastle Vice-Chancellor, Professor Nick Saunders, said the announcement boosted the Hunter region's already outstanding reputation for groundbreaking health and medical research.

"The Hunter has a strong track record for delivering research results and this building will further support collaboration between groups working in areas of global importance including cancer, asthma, stroke and mental illness," Professor Saunders said.

"The building will also ensure that the Hunter region continues to attract world leading researchers and health specialists, innovative technologies and research funding.

"I would like to acknowledge the support of the Australian Government, the NSW Government and my colleagues in the University and HMRI who have all worked so hard to get this critical project off the ground."

HMRI is a partnership between the University of Newcastle, Hunter New England Health and the community.