Suspended Liberal MP Andrew Cornwell has admitted to a corruption inquiry that he pocketed a $10,000 "bribe" from one property developer and used it to pay his tax, and also took an envelope stuffed with cash from a second developer.

Mr Cornwell, the member for Charlestown in the Hunter Valley, told the Independent Commission Against Corruption on Thursday that local property developer Hilton Grugeon gave his wife $10,120 as "payment" for a painting that Mr Cornwell gave the developer at Christmas in 2010.

Bribe admission: Andrew Cornwell and his wife Samantha Brookes arrive at the corruption inquiry. Credit:Daniel Munoz/Getty Images

He also said he took an envelope containing $10,000 in cash from property developer Jeff McCloy, now the Newcastle lord mayor, during a clandestine meeting in Mr McCloy's luxury Bentley in October that year.

Pressure is mounting on Mr McCloy, who denies the claims, to step down as lord mayor during the inquiry.