The demolition of Sydney’s Allianz Stadium can begin immediately after a judge dismissed an application to extend a court order preventing major works.

The temporary injunction – put in place in February to allow a challenge to the $730m project in the land and environment court – was due to expire at 5pm on Friday.

Those behind the failed challenge applied to have it extended until Monday, when they head to the court of appeal in another attempt to stop the controversial project.

But on Friday Justice Nicola Pain dismissed the application and lifted the freeze on major works.

It follows her decision on Wednesday to throw out the challenge based on the planning process to rebuild the city’s biggest rectangular stadium.

Community group Local Democracy Matters is now considering applying for an urgent injunction before their appeal is heard next week.

The group had unsuccessfully argued planning minister Anthony Roberts did not consider design excellence or soil contamination before approving the project and his government did not exhibit the demolition proposal for long enough.

LDM spokesman Chris Maltby, an IT specialist for the Greens, said it would be an outrage if the bulldozers were sent in before Monday.

Despite an ongoing legal challenge, bobcats and diggers are dismantling the Sydney Stadium in Moore Park, ABC footage shows. Despite an ongoing legal challenge, bobcats and diggers are dismantling the Sydney Stadium in Moore Park, ABC footage shows.

“If the government does proceed like that, it says everything you need to know about how they’ve carried out this project,” he said.

The New South Wales opposition leader, Michael Daly, told the ABC that the government should not proceed with demolition works until LDM’s appeal has been heard.

“Only someone spectacularly arrogant would send the wrecking balls in to knock that stadium down now, given the anger about this is white-hot.”

“This is not just about stadiums,” he added. “The stadiums are emblematic of everything we’ve seen with this government. They change their minds, they don’t do the planning. When the business case doesn’t stack up, they ignore it anyway. Communities aren’t consulted. Plans aren’t done. It’s like the light rail. It’s like the WestConnex. It’s like the Opal building. It’s like a million dead fish in Menindee. This Allianz Stadium debacle is emblematic of everything this government does.”