The Queensland Government has confirmed that it has signed an agreement with the backers of a controversial $2 billion irrigation project proposed for the state's far north.

The memorandum of understanding ties up unallocated water in the Gilbert River until the project has been through an environmental assessment process.

Natural Resources Minister Anthony Lynham told Parliament he signed a memorandum of understanding with Integrated Food and Energy Developments (IFED).

The IFED project would use water from the Gilbert River system in the Gulf region to irrigate 650 square kilometres of crops.

Mr Lynham said the agreement sets out a clear and comprehensive assessment pathway for the project, and replaces what he called a secret development protocol struck under the previous LNP government.

He said the process laid out by the Government strengthens environmental safeguards by requiring an independent scientific review of the project proposal.

"Until IFED has completed the comprehensive EIS process, Government is not in a position to release any unallocated water in the Gilbert River catchment," Mr Lynham said.