Queensland Treasurer Tim Nicholls says the Toowoomba bypass will likely be a toll road to pay for ongoing maintenance costs.

A new highway bypass around Queensland’s largest inland city will be a toll road, Queensland’s treasurer says.

The federal government is expected to announce on Friday that it will fund 80 per cent, or $1.36 billion, of the bypass around Toowoomba, west of Brisbane.

The state will contribute the remaining 20 per cent, or $342 million.

Queensland Treasurer Tim Nicholls says it will likely be a toll road to pay for ongoing maintenance once the bypass is built.

“The tolls will actually just cover the operation of it, not the actual construction. That will be paid for by the state and by the federal government,” he told ABC Radio.