Footage of the Sydney Football Stadium at Moore Park shows the interior being dismantled by diggers and bobcats despite ongoing legal challenges over its demolition.

Key points: The Government has been urged to cease demolition of the stadium

The Government has been urged to cease demolition of the stadium The legal challenge is ongoing but dismantling has already begun inside the venue

The legal challenge is ongoing but dismantling has already begun inside the venue The matter will return to court Friday morning

Opposition Leader Michael Daley questioned the extent of the tear-down in the face of an injunction that was due to be lifted in the Land and Environment Court on Thursday afternoon, but was adjourned until Friday.

"I'm not an engineer but they're not ripping wallpaper off in there," he said.

"The injunction hasn't run out yet and you can hear the bashing and smashing and destruction and crashing behind us now.

"There's a bit of explaining to do."

The State Government has a $730 million plan to knock down and rebuild the stadium.

Community group Local Democracy Matters and Waverly Council launched the legal challenge, claiming the Government did not adhere to its own rules about public consultation and design.

A Sydney court last week heard delays to the demolition would cost Infrastructure NSW $46,000 a day and jeopardise the June 2020 completion date.

Mr Daley has made the stadium an election issue by declaring he would not rebuild it if Labor wins this month's election.

The NSW Government has claimed the stadium is falling behind the rest of the country. ( ABC News: Jamie Toomey )

When asked whether he believed Thursday's demolition works breached the injunction, Mr Daley said he had no way of knowing.

"This is the whole point — no-one knows what's happening inside there," he said.

"I can't answer the question because I'm not allowed in."

Mr Daley called on Premier Gladys Berejiklian to halt all demolition works until after the election on March 23.

"Why can't they just wait?" he said.

"There are 16 days to go until the election, there is no reason why this stadium should be demolished right now as it is.

"Only a Government dripping with arrogance would proceed to knock down this stadium against the wishes of the people with 16 days to go."

Ms Berejiklian said the Opposition Leader was only concerned with cancelling major projects.

"I'm very, very concerned that the leader of the Opposition has one policy at this election and that is to cancel projects," she said.

"We can't afford to have NSW go backwards."