The Merewether beachfront site is approved for redevelopment, but a delay in getting rid of the derelict pavilion has prompted Newcastle City Council to take matters into its own hands.

The Herald understands that if developer Sailors' Rock does not have the old building down by April 23, the council will bring in the wrecking ball itself.

It comes as welcome news to Newcastle councillor Tim Crakanthorp, who lobbied for $150,000 for a public domain plan for Merewether Beach.

"I do think it's great news for the people of Newcastle and Merewether," Cr Crakanthorp said.

"There seems to be delay after delay. And it's time for some action."

Newcastle developer Keith Stronach, who leads the Sailors' Rock consortium, declined to comment on the April 23 deadline.

"We have contractual obligations with council," Mr Stronach said.

Mr Stronach put the Surf House redevelopment on the market in November, after saying when the council approved plans in August that the building would "definitely be down before Christmas".

He said yesterday that Sailors' Rock would construct the new building and expected to make an announcement in due course about a proposed tenant.

Surf House has been earmarked for demolition since April 2008, when the council was considering expressions of interest for the site.

The latest chapter follows years of public concern about the building, which was damaged in the 1989 earthquake.