NSW Deputy Premier John Barilaro says a controversial gas and oil drilling permit off the the state's coast should not be renewed.
Petroleum Exploration Permit 11 (PEP11), which expired earlier this month, allowed mineral exploration in 4500sqm of ocean between Sydney's northern beaches peninsula and Newcastle.
Permit holders Advent Energy and Bounty Oil and Gas sought a renewal of the exploration licence and permission to undertake exploratory drilling in the area, arguing it may hold significant mineral deposits.
The permit area was primarily within Commonwealth waters, which begin 5.5km offshore, and federal Opposition Leader Anthony Albanese has previously called for PEP11's permanent removal.
Federal Resources Minister Keith Pitt will make the final call on the matter.
But Mr Barilaro said in a statement on Wednesday that he did not believe PEP11 should be renewed.
"Mr Pitt formally wrote to me last week seeking my recommendation, and I want to acknowledge the representations made to me by my parliamentary colleagues, including the (northern beaches-based) Members for Pittwater, Terrigal and Manly," Mr Barilaro said.
"I have listened to their views, and those of the people they represent - it confirms my own position to recommend that PEP11 is not renewed."
Earlier this month Mr Albanese said he wasn't inherently opposed to oil or gas exploration but some proposals under PEP11 were too close to shore.
They could also affect the nearby NSW Great Lakes Marine Park.
Independent Warringah MP Zali Steggall and local Liberal MPs including Mackellar MP Jason Falinski also want PEP11 canned.
Mr Falinski last year moved a motion in the House of Representatives calling for the cancellation of PEP11 and emphasising the importance of Sydney's coastline to the local environment and tourism.
Australian Associated Press