The endorsement follows the completion of a comprehensive study reviewing transport network options to support current and future growth in the twin border communities.
Moira Shire Council chair administrator Dr Graeme Emonson said the decision represents a significant milestone for the region.
"This endorsement is fantastic news for Yarrawonga, Mulwala and the broader region,“ Dr Emonson said.
“Crucially, it means that all four relevant authorities - Moira Shire Council, Federation Council, the Victorian Government and the NSW Government - are now aligned on the preferred route.”
Both Yarrawonga and Mulwala have experienced substantial growth in recent years, and this trend is set to continue.
A second river crossing is vital infrastructure that will support this growth, improve connectivity, and enhance the livability of the communities.
The department's study assessed both the 'Green' and 'Grey' route options, considering land use, environmental factors, traditional owner considerations, active transport, and road network performance.
Federation Council Mayor Cheryl Cook said the community can now look forward to seeing this priority project progress into the design phase.
“For the residents of Mulwala and Yarrawonga, this crossing is more than just asphalt and concrete; it is a vital link that ensures our twin towns can grow together sustainably,” she said.
Dr Emonson also recognised the tireless advocacy of community members who have championed this project over many years.
"We must acknowledge and thank community advocates such as John Lawless and Robert 'Possum' Purtle among many others...“ he said.
"This outcome is a testament to what can be achieved when local communities, councils and state governments work together."