Massachusetts Senate yesterday eliminated the local veto from Gov. John A. Volpe's highway bond issue.

Senate approval of the bill today. The measure will sent back to the House, on the veto Volpe's original measure. fight over the veto in the House next week. Veto has been vigorously Cambridge officials, who to the construction of the multi-million dollar eight-lane Inner Belt through the center of the City.

Ten local communities -- including Cambridge -- had been given the veto during Volpe's first administration, and the governor, though opposed to the provision, signed it into law as part of a highway bond issue.

In the fight over the present bond issue, however, the governor has said that he would reject his own bill if it contained a local veto. Nevertheless, the House, led by Rep. John J. Toomey (D-Cambridge), restored the veto before sending the bond issue to the Senate.

The Senate Ways and Means Committee deleted the veto provision by a vote of 9 to 2 before reporting the bill out late Monday. Senate president Maurice A. Donahue (D-Holyoke) put off the crucial vote on the measure until yesterday in deference to Minority Leader Philip A. Graham (R. Hamilton), who was ill.

State highway officials have contended that unless the veto provision is eliminated, Massachusetts's $1.2 billion Interstate system is doomed. The federal government will pay 90 per cent of the cost of the system, which is now about two thirds completed, if it is finished by 1972.

The House version of the highway bill would allow 14 local communities -- four more than in the past bill -- to reject proposed routes for Interstate highways passing through them