Councillors launched a push to forge the suburb around the old Cockle Creek smelter site late last year.

Community consultation about three potential suburb boundaries was held earlier this year but returned in May with unfavourable feedback.

The council resisted calls to shelve the plan at that time and sent the results to its diverse economy portfolio for review. The committee met with GNB officials in June.

The GNB reiterated that, under its existing naming policies and guidelines, it would not approve the suburb name of Lake Macquarie.

"By having one area designated as the suburb of Lake Macquarie, it will restrict other people around the lake using that name which would in turn lead to confusion," GNB chair Narelle Underwood told the council.

Existing places with the same name as a local government area, like Newcastle, were approved under old policies, she said.

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While councillor Nick Jones labelled the plan "dead in the water", not all councillors were prepared to write off the idea forever.

Cr Luke Cubis questioned the GNB's policy and said there could be "wiggle room" to create the suburb if council chose to take it further.

Cr Colin Grigg said the GNB had offered "a pretty weak excuse" in opposing the name on the grounds of the potential for confusion.

Cr Jason Pauling conceded it was "not the time" to proceed but said the name had merit and was worth considering again in the future.

The GNB chair also provided advice about renaming Cockle Creek train station, which councillors had mooted naming Lake Macquarie.

She told the council that changing "long-established place names" was to be "avoided" and that it would have to prove any change was "in the public interest".

Cr Cubis said there appeared to be "flexibility" in the GNB's position on the train station and he believed the council could "mount a case" for its renaming.

The council voted 9-3 not to proceed with the proposed suburb.