Mayor Greg Piper said the event's organising committee had asked Lake Macquarie to host the games.

Cr Piper said he had made it clear to the committee that he would not enter into a bidding war with other cities because it would be too expensive.

"There's not anticipated to be any bid against us," Cr Piper said.

It would cost about $2 million to host the event, council external relations specialist Kelly Lofberg said.

She said the council would seek corporate sponsorship and government money for the event.

Cr Piper said hosting the event would have economic benefits and showcase Lake Macquarie.

"But in my view, it's all about the children," he said.

The event would attract about 3000 people to the area.

The council resolved last night to spend $11,000 to send Cr Piper and Ms Lofberg to the 2010 event in Bahrain in June.

The pair will lead a Lake Macquarie team of four sailors and two coaches and make a presentation about the 2014 event.

In other council business, a peak oil policy will be created for Lake Macquarie, with the city council voting unanimously last night in favour of the move.

Councillors directed council staff to prepare a draft policy and action plan to tackle the peak oil problem to prepare the city for the effects of "dramatic rises in petrol and oil prices".

Cr Phillipa Parsons proposed the policy, describing peak oil as the time when "the supply of oil ceases to increase and begins to decrease".

Cr Parsons said the council needed a plan to operate sustainably without oil.

"We need to leave oil, before it leaves us," she said.

Cr Piper said the council's sustainability department was taking action on the matter.