The federal government has taken the final step to stop a controversial offshore gas exploration project off the Hunter and Central Coast.
Prime Minister Scott Morrison formalised the government's intention to refuse the Offshore Petroleum Exploration Permit (PEP-11) on Thursday.
"The decision has been finalised to ensure PEP-11 will not go ahead as a result of the steps taken by my government," Prime Minister Scott Morrison said.
"I would like to thank our local Liberal Members and candidates and the coastal communities from Newcastle through to Wollongong for voicing their concerns and for working with the Government to ensure the local communities and environment remain protected."
The NSW government agreed with the federal government's proposed decision.
The National Offshore Petroleum Titles Administrator (NOPTA) has advised the applicant, Advent Energy, of the decision.
Federal Member for Robertson, Lucy Wicks MP said the cancellation of the PEP-11 licence was welcome news for the many local residents who used their voice to ensure waterways remain protected.
"The Prime Minster has listened to our community and taken action on his promise to cancel PEP-11 for good," Ms Wicks said.
"Surfing, fishing and boating are a part of our everyday life on the Central Coast and now that lifestyle will be preserved for future generations."