A relaxation of 1.30am lockout and 3am last drinks laws for live entertainment premises in Kings Cross and the Sydney CBD will be trialled for two years and a state-wide ban on take away sales and home delivery after 10pm shifted to 11pm following a review of the controversial measures.

Premier Mike Baird announced the decision on Thursday morning, three months after former High Court judge Ian Callinan recommended the changes to the government. The changes begin in January.

In the first major review of the laws since they were introduced in early 2014, Mr Callinan advised that a 2am lockout and 3.30am last drinks in venues with live entertainment could be trialled for two years.

He said the government could consider shifting the state-wide ban on takeaway alcohol sales after 10pm to 11pm and for home delivery to midnight.