Deputy Premier John Barilaro is pushing for Sydney's controversial lockout laws in the CBD to be scrapped by the end of the year.
According to 9News, the legislation could at the very least be relaxed, though under the proposed plan, the lockout laws would remain intact in the Kings Cross precinct.
The pitch was reportedly mentioned briefly in cabinet last month.
Speaking to Ben Fordham on 2GB, Keep Sydney Open's Tyson Koh said the news is "absolutely great".
"For the musicians, the tourists…. and really anyone who wants to enjoy the streets at night time, this is really great news.”
In a statement given to The Music today, Koh said, "Keep Sydney Open has kept up the pressure from the beginning, and now we’re a political party it looks like the State Government wants to deal with this issue to minimise our threat at the next election.