The State Library of NSW has walked away from a plan to open a rooftop restaurant despite an official statement from the Arts Minister suggesting the plan was in its "early stages" and required consultation.

After the Herald revealed the NSW government's plan on Tuesday, the State Library claimed the rooftop restaurant plan was "considered in 2016" but was no longer on its agenda.

"The proposal noted on the library's website is out of date and has been removed," it said.

Artist's impression of a proposed rooftop restaurant on the State Library. Credit:State Library

The plan to build a new restaurant and function room on top of the country's oldest public library was part of a larger state government project to revitalise historic buildings along Macquarie Street.