The Department of Planning is poised to make a decision on the future of 505 Minmi Road, Fletcher after close to a quarter of a century of debate about whether it should be conserved or used for housing.
City of Newcastle and Wallsend MP Sonia Hornery have sided with local residents who are fighting to have the 26 hectare block included in a Hunter Green Corridor project, which extends from the Wattagans to Stockton.
The council has urged the State Government to consider buying the land for inclusion in a National Park.
Meanwhile, Kingston Property is pushing ahead with plans to build up to 170 homes on the site, which it says are needed to address the region's housing shortage.
The Department of Planning said on Tuesday that it had held discussions with all parties about the site's future.
"The department has been in discussions with all stakeholders to make a determination on this planning proposal and is preparing a response to correspondence recently received from Newcastle City Council about the site," a spokesman said.
Those seeking to conserve the site say that it falls within the footprint of the green corridor project, as outlined in the 2009 Lower Hunter Conservation Strategy.
Advocates for the land's development point to multiple studies that show the land has been earmarked for housing.
"The current proposal for 505 Minmi Road suggests a balanced approach, allocating half of the site for conservation and half for housing. This plan is grounded in extensive studies and technical advice, ensuring that both environmental preservation and housing provision are achieved," project consultant Stephen Barr wrote in the Newcastle Herald last October.
The Hunter Region Plan 2041 identified the site as "New Residential Land".
The plan also confirms the green corridor's existence, however, details are not provided about its boundaries.
A department spokesman said the 2041 plan included a different classification than the 2009 plan, with areas identified as having 'high environmental values' instead of 'high conservation land'.
Green Corridor Coalition spokesman Brian Purdue said he was not convinced the government was adequately protecting the land needed for the green corridor.
"There is only one corridor site left in the area not zoned for housing and that is 505 Minmi Road, Fletcher," Mr Purdue said.
"Green Corridor Coalition again calls for this to be purchased for the National Parks Estate and then, along with the lands to Mt. Sugarloaf, fully protected by state parliament legislation, which is not presently protected."
The government agreed during last year's state election campaign to investigate the possibility of adding 505 Minmi Road to its proposed expanded national and regional parks network.
It has committed to creating five new national and regional parks across the state.
