Mayfield will have its first small bar under plans lodged with Newcastle council.
A group of Newcastle hospitality industry operators proposes to open Velvet @ Mayfield in a shopfront opposite the Stag & Hunter Hotel at 274 Maitland Road.
Co-owner Stephen Mogg said the bar would be influenced by the "glamour and decadence of the art deco and Gatsby era of the 1920s to 1940s".
"This development is in line with the council's Newcastle After Dark Strategy for guiding the development of a creative, safe and vibrant night-time economy," he said.
Mayfield has a host of pubs, clubs and restaurants but no small bars.
"Like many inner suburbs, the demographic of Mayfield is changing, and we are seeing new residential and business developments that will further push this change," Mr Mogg said.
"Newcastle has many destinations to choose, CBD, Darby Street, Hamilton etc. We don't see any reason that Mayfield should miss out."
Mr Mogg and his business partners have been involved in the Newcastle hospitality industry for more than six years, running cafes, Newcastle Accommodation Management and, most recently, Elizabeth Motor Inn at Adamstown.
The Stag & Hunter Hotel lodged plans in April for a $2.2 million overhaul and popular inner-city Mexican restaurant Antojitos plans to open a satellite venue at 235 Maitland Road.
The Newcastle Herald reported in August that developers had lodged plans for an apartment building with 38 units opposite the new Coles shopping centre in Maitland Road.