Gallium nitride is an important material for the production of next-generation visible and near-UV optical devices, as well as for high temperature electronic amplifiers and circuits; however there has been no bulk method for the production of GaN substrates for device layer growth. Instead, thick GaN layers are heteroepitaxially deposited onto non-native substrates (usually sapphire) by one of two vapor phase epitaxy (VPE) techniques: MOVPE (metalorganic VPE) or HVPE (hydride VPE). Each method has its strengths and weaknesses: MOVPE has precise growth rate and layer thickness control but it is slow and expensive; HVPE is a low-cost method for high rate deposition of thick GaN, but it lacks the precise control and heterojunction layer growth required for device structures. Because of the large (14%) lattice mismatch, GaN grown on sapphire requires the prior deposition of a low temperature MOVPE nucleation layer using a second growth process in a separate deposition system. Here we present a novel hybrid VPE system incorporating elements of both techniques, allowing MOVPE and HVPE in a single growth run. In this way, a thick GaN layer can be produced directly on sapphire. GaN growth commences as small (50-100 nm diameter) coherent strained 3-dimensional islands which coalesce into a continuous film, after which 2-dimensional layer growth commences. The coalescence of islands imparts significant stress into the growing film, which increases with the film thickness until catastrophic breakage occurs, in-situ. Additionally, the mismatch in thermal expansion rates induces compressive stress upon cooling from the growth temperature of 1025°C. We demonstrate a growth technique that mitigates these stresses, by using a 2-step growth sequence: an initial high growth rate step resulting in a pitted but relaxed film, followed by a low growth rate smoothing layer. As a result, thick (> 50 [Mu]m) and freestanding films have been grown successfully. X-ray rocking curve linewidth of 105 arcseconds and 10K PL indicating no "yellow" emission indicate that the material quality is higher than that produced by conventional MOVPE. By further modifying the hybrid system to include a metallic Mn source, it is possible to grow a doped semi-insulating GaN template for use in high frequency electronics devices.