The centre manifold approach is used to derive an approximate equation for nonlinear waves propagating in a sheared, stably stratified fluid layer. The evolution equation matches limiting forms derived by other methods, including the inviscid, long wave approximation leading to the Korteweg- deVries equation. The model given here allows large modulations of the height of the waveguide. This permits the crude modelling of shear layer instabilities at the upper material surface of the waveguide which excite solitary internal waves in the waveguide. An energy argument is used to support the existence of these waves.