Sydney’s controversial lockout laws could be relaxed by the end of the year in a drastic plan to revitalise the city’s nightlife.

9NEWS has learned Deputy Premier John Barilaro is pushing for the 1.30am lockouts in the CBD to be scrapped altogether.

The wind-back would coincide with the light rail construction barricades on George Street being removed at the end of the year.

Under the plan, there would be no change to the Kings Cross precinct.

Deputy Premier John Barilaro is pushing to scrap the lockout laws in Sydney's CBD.

It’s understood the plan was briefly mentioned in cabinet last month but never discussed.

9NEWS has spoken to eight cabinet ministers who all support the lockouts being significantly softened.

Mr Barilaro would not comment.

The laws were introduced by then Premier Barry O’Farrell in February 2014, and restricted trading in precincts from Kings Cross to Pyrmont.

Patrons were unable to access licensed premises after 1.30am and last drinks were to be served at 3am.

The change would affect premises in the CBD, but not Kings Cross. (Getty)

A statutory review was launched which broadly supported the laws, but saw lockouts relaxed by 30 minutes for live entertainment venues.

The Police Association slammed any potential move to change the laws, instead saying they should be extended across NSW.

"The laws work, any politician that changes these simple laws will have blood on their hands," Police Association President Tony King told 9NEWS.

The Australian Hotels Association (AHA) have been calling for a relaxation of the laws for many years.

"Venues that do nothing wrong should not be blanketed with draconian measures and it's about time we looked at that," AHA's John Green said.

Sources have told 9NEWS that ultimately any change will be up to Premier Gladys Berejiklian, and whether there is an appetite for change leading into the March election.