An environmental study has found there were no obstacles in the way of building stage four of the Southern Feeder Road through the Shiralee and Park Road areas.

Further planning by Orange City Council will now take place before the road can be approved to be built.

The 2.6 kilometre link would extend the SFR from Jack Brabham Park to Towac Park racecourse.

It would go through bushland and along the existing route of Park Road.

The route would intersect Anson Street, Rifle Range Road, Cecil Avenue and Shiralee Road.

A roundabout would be built at the Shiralee Road intersection.

Stage four would end at Pinnacle Road.

The study said there were long-term plans to extend the road to eventually connect with the Northern Distributor Road to create an orbital bypass of Orange that would ease traffic flows through the city.

Stage two of the project, involving the construction of a bridge over the railway line north of Jack Brabham Park has just been completed.

Work on the next stage is due to start later this year.

That would take the route from Elsham Avenue to the Mitchell Highway on the current routes of Blowes Road and Dairy Creek Road.

The chosen route for stage four includes the need to install several culverts and stormwater pipes where the road crosses waterways.

Council is also proposing to install a potable water main alongside the new road.

The Review of Environmental Factors, by independent consultants Premise, examined the impact of the project on the environment, heritage items and on properties.

It found there were no significant affects on flora and fauna.

It also found there were no items of Indigenous heritage in the path of the road.

The report is now on public exhibition until September 11 at the council offices.

It is also available online on the council's website.

The study said council would use material from another area in the city for the work.

"Council propose to utilise excavated natural material from council land in the construction of the SFR Stage 4, being overburden from flood mitigation works undertaken on a council reserve adjacent to the Emus Rugby Club, Woodward Street," it said.