New South Wales Police officers are set to receive an historic new pay rise of up to 40 per cent over the next four years, as disputes with nurses and other public-sector unions are left in the dark.

The new pay offer, to be voted on later this month, will see more than 10,000 officers receive at least a 25 per cent pay rise.

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Houses have been evacuated and people urged to avoid the area as more than 100 firefighters tackle a large town centre blaze.