The operators of Sandgate Cemetery have lodged plans to expand the site by more than 3,000 plots.
Just over $2.2 million is being put on the table for the proposal, which also includes restoring the Presbyterian Shelter which was damaged during a storm event in 2020, as well as constructing a new amenities block.
It comes following concerns that cemetery space in NSW was dwindling, sparking fears of a shortage.
The local plans, which have been lodged with Newcastle Council propose to deliver them over four stages.
The first would see 820 new plots in the south east, followed by the Presbyterian Shelter upgrades, then the amenities and finally 2,200 more plots in the northern corner with the Newcastle Inner City Bypass and Maitland Road.