Fire breaks out at Myuna Bay Sport and Recreation Centre

A Fire and Rescue NSW spokesman said the call came in just before 1pm and within the hour crews had the fire contained.

"We're starting to release trucks now, it happened down on Wangi Road," he said.

"I don't know the exact building that was alight but the building which was on fire looks to have been about 40m by 20m.

"Crews also had water supply problems so they have used bob tankers that we had."

The spokesman said a second building was possibly also involved in the fire and at least 12 fire trucks, including HAZMAT, were called to the scene.

No injuries have been reported and it's unclear at this stage what sparked the blaze.

A decision on the fate of Myuna Bay Sport and Recreation Centre is looming, with the Hunter and Central Coast Regional Planning panel to decide whether it will be demolished at a public teleconference this month.

The public will have the opportunity to weigh-in on the $2.8 million development application.

Abandoned since its abrupt closure in 2019, the former school camp site has been at the centre of tug-of-war between Lake Macquarie council and the state government.

In December, the council staved off a decision to approve the site's demolition. Instead, it voted to seek permission from NSW Lands and Property Minister Steve Kamper to refuse the demolition application.

The decision is now in the hands of the planning panel, which will make a determination at a public teleconference on March 19.

The site was shuttered almost overnight in 2019 due to concerns about the risks the nearby Eraring Power Station's coal ash dam posed in the event of a 5.7 magnitude earthquake - deemed a once-in-a-5000-year event.

The DA proposes to demolish all buildings and structures belonging to the former Myuna Bay Sport and Recreation Centre, including car parks, accommodation lodges and outdoor activity spaces.