The latest redevelopment proposal, which would grant public access to the off-limits landmark, is before Newcastle City Council.

The $1.2 million application is for a 46-seat restaurant, takeaway food outlet and seven accommodation suites.

A spokesman said yesterday the corporation was using the plans and reports transferred to it from previous proponent, Nobbys Lighthouse Consortium.

It had lodged with the council a modification to the approved application.

"The submitted modification is to bring the development application in line with Federal Government requirements and to maintain the corporation's aims, including the provision of safe access for the public," the spokesman said.

"Newcastle Port Corporation will consider the next phase of the development after assessment of the modification application by Newcastle City Council and progress of the Newcastle Coastal Revitalisation Masterplan."

The State and local government masterplan is scheduled for public exhibition next month.

The corporation's development application said the modified proposal reduced significantly the amount of new structures on the site.

Careful consideration was given to the design and layout to ensure safe, equitable use while allowing public access to one of Newcastle's most iconic landmarks.

The consortium, led by Newcastle restaurateur Neil Slater, originally proposed larger restaurant and accommodation space and a public observation deck.

Federal Environment and Heritage Minister Peter Garrett rejected initial plans for the project in 2008.

After a series of revisions, Mr Slater decided it was unviable to proceed and transferred ownership of plans and reports to the corporation, which manages the site.