While CNC machining (subtractive method) is the only option when it comes to high quality components, it demands greater human intervention to generate the CNC programs, making it a slow and costly route. On the other hand, Rapid Prototyping (additive method) is able to convert the design into the physical objects without any human intervention. But its total automation comes with compromises in the qualities of geometry and material. A hybrid layered manufacturing process presented here combines the best features of both these approaches. In this process the near-net shape of the object is first built using weld-deposition; the near-net shape is then finish machined subsequently. Time and cost saving of this process can be attributed to reduction in NC programming effort and elimination of rough machining. It is envisioned as a low cost retro-fitment to any existing CNC machine for making metallic objects without disturbing its original functionalities. Near-net shape building and finish machining happening at the same station is the unique feature of this process. A customized software generates the NC program for near-net shape building. The intricate details of integrating arc welding unit with a CNC milling machine are presented in this paper. © 2010 Elsevier Ltd. All rights reserved.