The company advised the Government's Newcastle City Centre taskforce in October that its plan to create a retail, entertainment and residential mecca in and around the dwindling Hunter Street Mall might not proceed if the train corridor stayed.

Newcastle MP and Minister for the Hunter Jodi McKay said yesterday that the Government, which previously insisted the rail line must stay, was now prepared to look at all options, including possibly terminating trains at Wickham.

GPT retail project director Philip Heaney said yesterday's announcement provided no certainty for investment.

"None whatsoever," Mr Heaney said.

Asked if he was disappointed that a more specific Government position had not been declared, Mr Heaney said: "If I was candid, I'd say yes.

"As far as we understood there was more of an explicit process of evaluation under way that would perhaps lead to some conclusions."

GPT intends to halt investment in its plans for Newcastle until the Government's position is known, which may not be until June.

"We more than likely won't commit funds to further development design of the site until we understand what the decisions are . . . or what the recommendation to the Federal Government is," Mr Heaney said.

Ms McKay has authorised Hunter Development Corporation to review options for city development and transport and make an application for Federal Government money to pay for it.