All three options for the proposed suburb include the former Pasminco smelter site in Boolaroo earmarked to house major retails chains like IKEA and Costco.

While one option is largely only that site, another stretches the suburb boundary down to Speers Point Park, while a third incorporates existing residential areas of Boolaroo and land on the western side of Cockle Creek in north Teralba.

The later option is the only considerable change from proposed small, medium and large suburb boundaries discussed by the council late last year and comes after the purchase of seven hectares of land in that part of Teralba from the Hunter and Central Coast Development Corporation in December.

That land was acquired to be added to 42 hectares the council already owned, all of which is earmarked for future recreational facilities.

The council unanimously endorsed putting three potential suburb boundary maps out for community consultation at a meeting in November.

The decision came after the Newcastle Herald revealed councillors' interest in revitalising the proposal to have a suburb named Lake Macquarie in the city, an endeavour which had been pursued before but failed to obtain significant community support.

The council's manager integrated planning, Wes Hain, said a Lake Macquarie suburb would reinforce the city's identity and strengthen the community's sense of place.

"Council has recognised for some time the value in creating a suburb called Lake Macquarie," Mr Hain said.

"In a practical sense, it may reduce confusion between Lake Macquarie and Port Macquarie."

The postcode for the Lake Macquarie suburb would likely be 2284 - the same as Boolaroo and Speers Point.

All three options also include Cockle Creek train station, which councillors have toyed with renaming Lake Macquarie station if the suburb is to be formed.

The council has opened a feedback portal on its shape.lakemac website and is encouraging residents to nominate which option they prefer, or to provide alternative suggestions.

The NSW government's Geographical Names Board would have the final say on the suburb should the council endorse a proposal after community consultation.