Buildings across the City of Sydney are set to get much more colourful if a proposal by the council to cut red tape for street art commissions is approved.

Until now property owners in low-density residential areas who want some art on their external walls have to submit a development application to council.

The council has now recommended a change to its Local Government Environment Plan that allows murals and artworks to be produced without need for council approval.

The changes will now be determined by the Greater Sydney Commission, although approval is "very likely" City of Sydney councillor Jess Scully told ABC Radio Sydney.

"What we're saying is that building owners should be able to decide, 'I want this to be a street art wall'," Cr Scully said.

"At the moment, you can't do that ... you've got to come back and get approval for every specific work you have."

Under the new rules, the public art must be designed by an artist who has written consent from the property owner and not be an advertisement.

The City of Sydney wants to simplify the commissioning process of street artists. ( 702 ABC Sydney: Amanda Hoh )

While street art in heritage conservation zones, such as Glebe, would still need council approval, Cr Scully said the council was looking to "balance the need for diversity and expression with people's quiet enjoyment of the street."

Artist Scott Marsh, who last year earned infamy from Chippendale all the way to Hollywood with his mural of Kanye West kissing Kanye West, welcomed the new policy.

"I think it's a great thing; this will definitely see more colour in the city," he said.

"My background was in illegal graffiti, so when it came to red tape I would just ignore it.

"But it's a massive positive thing. Building owners should have the choice of what they want to put on the walls rather than fill in a lot of paperwork."

Marsh, who had his mural of Mike Baird officially removed by the State Government in October, has campaigned to loosen the restrictions on public art throughout the city.

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He said he had been commissioned for murals before, only to have jobs cancelled when the building owner got frustrated with the paperwork.

Marsh said hoped the new policy would "legitimise" graffiti artists who can often earn up to $15,000 to paint a large wall.

Deterring unwanted graffiti

Other local governments in Sydney have used public art programs to encourage street murals as a way to deter unwanted graffiti.

The Inner West Council's Perfect Match program invites residents or property owners to apply for funding to have a street artwork painted on a wall.

The City of Sydney also plans to start a street art register that would document works in the area as well as record public feedback.

"We're trying to strike that balance ... let's celebrate the great artists we have in Sydney and let people know where we can seek out work," Cr Scully said.

"For a long time we've wanted to see more colour on the streets."

She reassured residents they could still report illegal graffiti such as tagging as the council's graffiti removal team would still be operating.