The Rottnest Island Lodge's $40 million redevelopment has been approved, but there are restrictions to ensure the site's unique Indigenous history is acknowledged.

The Whadjuk Noongar people call the popular holiday island Wadjemup, which is located off the coast of Fremantle, Western Australia.

The clearance is conditional on the property having an Aboriginal cultural heritage plan and the new 102-room hotel being named in Whadjuk Noongar language, with the Whadjuk people also providing input and monitoring the project.

This would assist to highlight that between 1838 and 1931, the island was used as a jail for around 4,000 Aboriginal men and boys from across Western Australia.

The Lodge will be redeveloped by a consortium led by Place Development beginning in mid-2022, with completion expected in 2025.

There will be a cafe, restaurant, and spa centre at the new ew resort. There will be food and beverage outlets, a cafe, a restaurant with a focus on Western Australian vegetables, a wellness centre, and two pools in addition to the 102 rooms.

During any excavation or ground disturbance activities, the developers must have a Whadjuk Aboriginal Monitor on site.

The will also need to consult with heritage experts about the construction.

The former Quod, a 29-cell prison adjacent to the Lodge that was shuttered as holiday accommodation in 2018, is not part of the redevelopment project and will not be included in the new hotel.