The state government has decided to extend for another year a ban on all new pub and club licences in Kings Cross and Sydney's centre.

The NSW Deputy Premier and Justice Minister, Troy Grant, said the government had decided to extend the ban while it reviews the O'Farrell government's sweeping 2014 changes to trading hours for pubs and clubs.

NSW Deputy Premier Troy Grant says the freeze will allow a state government review to run consistently. Credit:Dallas Kilponen.

"We want […] to have certainty and confidence that nothing will change while we conduct this major review," Mr Grant said.

The Baird government begins this month its review of the lockout laws which forbade licensed venues from accepting new patrons after 1.30am and serving alcohol at 3am.