Sydney's controversial lockout laws should be dramatically rolled back in an effort to strengthen the night-time economy, the NSW Premier says.

Key points: The lockout laws would still apply in Kings Cross, which was previously a hotspot for alcohol-related violence

The lockout laws would still apply in Kings Cross, which was previously a hotspot for alcohol-related violence NSW Premier Gladys Berejiklian said jobs must return to the night-time economy

NSW Premier Gladys Berejiklian said jobs must return to the night-time economy St Vincent's Hospital said it was a "disappointing" announcement and medical staff would have to pick up the pieces

The 1:30am lockouts are expected to be lifted in the CBD entertainment district, which includes Oxford Street, but will remain in place for Kings Cross.

The legislation was introduced in 2014 with the aim of reducing alcohol-fuelled violence, particularly in Kings Cross, after the two coward-punch deaths of Thomas Kelly and Daniel Christie.

Premier Gladys Berejiklian said the city's night-life needs to be resurrected for the sake of jobs but community safety will always be the primary focus.

"It's time to enhance Sydney's night-life … we need to step it up," Ms Berejiklian said.

"Sydney is Australia's only global city and we need our night-life to reflect that."

Ms Berejiklian said changes to transport, specifically the upcoming CBD light rail, will make it safer for people to travel to and from bars and clubs.

But the Premier said she would not support any changes to restrictions in Kings Cross thanks to its history of bloodshed.

The announcement precedes a report due to be released in coming weeks by a joint parliamentary committee into Sydney's night-time economy.

"I'm more than happy to relax or even repeal the laws depending on the committee's findings … but [they] have demonstrated we need to find a better balance," Ms Berejiklian said.

She said she will consult with her colleagues before a final decision is made.

Over the last six years thousands of people have attended rallies opposing lock out laws. ( ABC News: Jean Kennedy )

The proposed change has prompted an outpouring of relief from venue operators.

Oxford Art Factory owner Mark Gerber said "good riddance" and believes the city could now look forward to a rebirth.

"[It felt] like living in East Berlin under Stasi control, not in sunny old Sydney town," he said.

"Let's do this Sydney … I'm overjoyed."

Doctors and nurses will have to 'pick up pieces'

The president of the Australian Medical Association said it was a "poor" choice to roll back such a successful preventative health measure.

"This appears to be the Government prioritising a particular business over public health," Dr Kean-Seng Lim said.

St Vincent's Hospital in Darlinghurst said the surprise announcement was "incredibly disappointing" and a huge backward step to the "bad old days".

"We don't believe the answer to reinvigorating Sydney's night-life is turning the beer taps on 24/7," hospital spokesperson David Faktor said.

"We need to be a better society than that."

Mr Faktor said Ms Berejiklian should be reminded that for every hour alcohol trading is increased there is a corresponding increase in alcohol harm.

He said it was not fair that it would be the doctors and nurses at St Vincent's who "pick up the pieces".

The NSW Police Association previously called for the laws to be extended statewide. ( ABC TV )

The St Vincent's submission to the parliamentary committee last month said the constant flow of injured to the Emergency Department was like a "conveyor belt of carnage" pre-lockout laws.

The inquiry received a massive 792 submissions and heard from professional musicians, club and bar owners and health professionals.

Veteran singer Jenny Morris told the committee Sydney had become a "laughing stock" but St Vincent's Hospital said they had not seen one alcohol-related assault death since the laws rolled out.

When former premier Barry O'Farrell introduced the sweeping changes, he said they were tough but he made "no apologies".

The Police Association of New South Wales said the measures were exactly what the city of Sydney needed.

Lockout measures introduced to Newcastle in 2008, combined with a curfew, resulted in a 36 per cent drop in assaults.