Odyssey House has room for 15 patients at its Molyullah site, and sought planning permission from Benalla Council to expand to the property to cater for 35.

Some nearby residents had opposed the plans, which would allow about 60 more people each year to seek treatment.

Lawyers for the rehab centre took the council and objectors to the Victorian Civil and Administrative Tribunal after council staff failed to make a timely decision on the development.

The council expressed support for the development if planning amendments and conditions were in place.

The proposal was approved at VCAT last month, with works to commence once further plans are approved by the council.

Odyssey House residential services manager Eric Allan said he was "delighted" the long-planned upgrades were finally ticked off.

"We look forward to working with the people of the North East, the neighbours and the council in delivering the best service that we possibly can," he said.

"It will mean that we're able to expand our current service here by 20 beds and do something about the six to eight month waiting list."

Many people struggling with addiction struggle to find residential rehabilitation beds or face lengthy waits.

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"There's definitely a very high demand in the North East," Mr Allan said.

"There are still a few outstanding minor planning issues that have to be worked through.

"We haven't had time to sit down with the builders yet."

It's unclear when the construction will start.

Tribunal members Geoffrey Code and Shiran Wickramasinghe said the design of the new building was acceptable.

"Similarly, we find the increase in the number of beds to 35 resulting in approximately 60 additional residents on site each year to be acceptable," they said.

"To date, there have been no reported adverse off-site amenity or safety impacts.

"There is also no evidence of nearby residents experiencing any anti-social behaviour.

"The outcome of the proposal is to continue to provide an alcohol and drug rehabilitation service to more people.

"There is unlikely to be any unacceptable off-site amenity or safety impacts."

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