Bathurst Regional Council has approved plans from Bathurst Physiotherapy and Sports Injury Centre to redevelop the former Pollett's Martial Arts Centre at the bottom of Mitre Street into a new premises for the business.

But the approval was only possible after council agreed in July to change its planning rules to allow the site to be converted to a health facility.

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At the time, a report to councillors by environmental planning and building services director Neil Southorn noted the land was zoned RE2 Private Recreation Zone, which did not allow it to be used for a health facility.

But he recommended a change to the Bathurst Regional Local Environment Plan (LEP) that would allow the physiotherapy clinic - and potentially other health-related businesses - to form a health cluster near the hospital and new Bathurst ambulance station.

"There are no environmental or planning grounds why the proposal should not proceed," Mr Southorn's report said at the time.

"The proposal ensures that lands in close proximity to the hospital are able to support new health services facilities, subject to development consent."

Councillors agreed to the LEP change and now the plans lodged by Bathurst Physiotherapy for a $1.5 million redevelopment of 45 Mitre Street have also been given the green light.

A Statement of Environmental Effects (SoEE) lodged with the plans says the building will be given a new exterior facade but the building will remain intact.

However, inside the building about half of the 1200 square metres of floor space left vacant for a future tenancy while the other half will be extensively remodelled to include 12 consulting rooms, gym areas, reception and office space.

No trees will be removed as part of the redevelopment and all existing roof heights will remain.