Queensland mining mogul Clive Palmer could go ahead with his takeover plans for Gladstone Pacific Nickel Ltd, according to the federal government, who declared on Friday that it would not get in the way of the brewing acquisition.

Mr Palmer is set to up his stakes on Gladstone Pacific Nickel from his present interests of 50.04 percent as represented by his company, QNI Resources.

However, Gladstone Pacific's major shareholder from London, investment firm RAB Special Situations Fund Ltd, questioned the deal as Mr Palmer pushed forward his offer of acquiring the remaining shares of the company, where he already seats as a non-executive director.

QNI Resources formally tossed its proposal of buying Gladstone Pacific Nickel's shares yet to be owned by Mr Palmer for 14 pence per share in August.

Yet before the takeover deal could be finalised in October, the federal government stepped in and ordered QNI Resources to halt the processing of any acceptances from shareholders, saying it would re-examine the acquisition deal first.

Weeks after the intervention, the review panel set up by the federal government said on Friday that takeover recommendations submitted by QNI Resources to it shareholders were far from being misleading and unreasonable.

The government panel also said further proceedings into the matter would not be required, effectively giving Mr Palmer the green light to resume and complete his takeover dealings with Gladstone Pacific Nickel.