Assistant Planning Minister Diane Beamer has requested an archeological study to take place at the proposed marketplace site - the old Fitzroy Iron Works site on the Old Hume Highway - two days before Wingecarribee Shire Council was scheduled to make a decision on the development application.

The State Government's 11th hour intervention has upset some councillors and business representatives, but Woolworths representatives said they are willing to work through the issue with council and the Heritage Office.

Woolworths property general manager Peter Thomas said developers had already worked out a comprehensive management procedure with council in case any relics from the iron works were discovered at the site, but said they accepted this latest intervention from State Government.

"The site's prior history was always a consideration in our application," Mr Thomas said.

"Woolworths Limited will now work through this latest development in conjunction with council and DIPNR (the Department of Infrastructure, Planning and Natural Resources) in order to deliver the benefits of the project to the Southern Highlands community, while maintaining any important linkages to the site's past."

Meanwhile, Wingecarribee Shire councillor Larry Whipper has applauded the Planning Minister's actions to delay any developments at the site; saying councillors should have more time to scrutinise the Big W proposal.