Newcastle City Council staff have recommended approving a development application for 2097 new seats in the stadium's lower concourse.

Hunter Sports Venue Authority chairman Ted Atchison said stage two was a $12 million project and if approved would follow an $8 million first stage that added ground-level seating to the stadium.

Tenders are being sought until July 31 for stage two.

Mr Atchison said he expected construction to begin on August 24.

Another $40 million worth of work on the western grandstand would be done in two stages over the next two years.