Environmental groups have warned of an ecological destruction if a plan to rezone land on the western fringe of Newcastle and Lake Macquarie proceeds.
The proposed Eden Estates project spans 592 hectares across the local government areas.
It takes in parts of Glendale, Edgeworth, Cameron Park, Elermore Vale and Wallsend.
It is estimated 3000-4000 homes could be built on the land if the project proceeds.
City of Newcastle has requested more information about the potential environmental impacts of the project.
"The Link Road forest provides an essential corridor for biodiversity, and is among the most significant areas of intact bushland remaining in the Newcastle LGA," Hunter Community Environment Centre coordinator Jo Lynch said.
"Climate change is already wreaking havoc on biodiversity and driving extinction. If we are to ensure the survival of our threatened species we must protect habitat now in preparation for worsening impacts in the coming years.
We call upon the council to reject the rezoning application when it comes before them and ban further land clearing in the LGA."
Hunter Bird Observers Club has identified a number of threatened bird species at the site, including several large forest owls as well as the vulnerable Glossy Black Cockatoo.
The group has expressed concern about the loss of dry spotted gum and its impact bird species.
Eden Estates managing director Terry Goldacre last year said the company was very conscious of the ecology within the area and would aim for "a balanced development that retains a lot of bushland".
"We will be going to great length to protect and preserve all the important ecological values," he said.
"We see a balanced development that retains a lot of bushland. Connectivity is something we really value."
A report to Lake Macquarie Council last year said the proposal sought to rezone the site to provide more housing, employment land and community infrastructure such as open space and recreation areas along with transport networks, while protecting watercourses and important ecological areas.
