The plans lodged with Newcastle council on behalf of the state-owned Metropolitan Memorial Parks detail a four stage development aimed at extending the use of the cemetery.

A 2020 report by Whitella Consulting titled The 11th Hour - Solving Sydney's Cemetery Crisis identified an impending shortage of cemetery space in NSW, and estimated that Sandgate will run out of burial plots by 2039.

The first stage of the development includes 820 new plots in the southeast lawn and associated works.

The second stage is refurbishing the Presbyterian shelter after damage caused by a November 2020 storm, while the third stage involves building a new amenities block within the Macedonian section of the cemetery.

The final stage, which would be delivered at a time based on demand, would expand the cemetery north to provide 2200 additional burial plots and a small ash memorial garden.

Metropolitan Memorial Parks CEO Denise Ora said the application proposed a "thoughtfully planned expansion and repurposing of specific areas at Sandgate Cemetery" that "will significantly extend the cemetery's capacity beyond 2039".

"As a Crown Land Manager, we recognise the need for additional burial space in Sydney and Newcastle," she said.

"Our commitment lies in maximising our land to create dignified interment areas for our communities, while also maintaining our cemeteries as tranquil open spaces in our growing cities.

"This additional capacity will provide ample space for future burials."

Planning documents state a Statement of Heritage Impact prepared by Heritas in October 2023 noted the northern expansion area (stage four) originally formed part of a 2000 acre land grant, which was later subdivided into residential allotments fronting Maitland Road.

The documents said this area had likely remained vacant to its location within an area of swampland, proposed as a nature reserve and conservation area by the National Trust in the 1970s.

Ms Ora said extensive assessments had been conducted to ensure the area was appropriate for development.

"This includes considering factors such as the land's history, environmental impacts, and long-term stability," she said.

"We can assure you that all necessary precautions have been taken to ensure the suitability of the proposed expansion area."

Ms Ora said the capital works team would "carefully manage the project" to minimise disruption and ensure accessibility and safety for visitors.

"We understand the importance of maintaining a respectful and peaceful environment for those visiting their loved ones," she said.

Metropolitan Memorial Parks manages eight cemeteries across NSW, and Ms Ora said they were looking at options in other cemeteries to address predicted capacity issues.