The report by Ingenium Research for the Council of Capital City Lord Mayors says Newcastle's night-time economy amounts to 6.3 per cent of business establishments, 13.7 per cent of employment and 5.7 per cent of turnover, all figures substantially higher than the NSW and Australian averages.

In NSW and Australia, the night-time economy accounts for 4.7 per cent of businesses, less than 9 per cent of jobs and less than 4 per cent of sales turnover.

The research, released in September, also shows drink establishments in Newcastle, including pubs and bars, account for 14 per cent of the night-time economy, almost double the NSW and Australian ratios.

A NSW parliamentary committee this week recommended another review of Newcastle's late-night lockout laws if a planned relaxing of trading restrictions in Sydney proves successful.

It said the state government's large investment in Newcastle urban renewal had not translated into a more active entertainment and tourism industry.

Committee member Mark Latham told the Newcastle Herald on Monday that a review of Newcastle's lockout laws was warranted because the city needed to diversify its economy.

Newcastle MP Tim Crakanthorp also welcomed the prospect of a review because traders had "suffered under these restrictions".

"We need to be looking for ways to support a vibrant night-time economy," he said.

"Whether that be through relaxed lockouts, more live music venues or changes to bar service, we need to put all options on the table."

City of Newcastle has also argued that pubs and bars with good behaviour records should be exempt from lockout laws.

But Mr Brown said the new research "casts significant doubt" over the parliamentary committee's findings.

"Newcastle has led the way in developing a vibrant, safe and prosperous night-time economy that has boosted local business and jobs," he said.

"The NSW government and council's business-killing strategy, under the euphemism of business revitalisation, is the likely primary cause for more recent closures of many small businesses, including the Reserve Wine Bar.

"It is misleading and deceptive to blame our live-saving alcohol controls for these recent closures."

Hunter police and medical professionals support the lockout laws, which have been credited with a 30 per cent fall in violence and assaults since they were introduced in 2008.

The government has extended hotel and club trading hours across the state for the NRL grand final on Sunday night.

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