A P-plater filmed laughing after she was caught on camera using her phone while driving has lost her license.

Police issued an infringement notice to the woman driver after officers were handed video showing her laughing as she brazenly broke the law.

The 20-year-old driver was issued an infringement notice for $330 and four demerit points, which will result in her losing her licence.

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Police are investigating mobile phone footage posted online showing a women brazenly using her mobile phone while behind the wheel

The witness, who filmed the footage, attended Waratah Police Station and reported the incident.

Police also asked anyone with information to come forward.

The video shows the young woman driving a red Holden Commodore with a red P-plate attached to the front of the vehicle, near Newcastle, north of Sydney.

She is chatting away on a mobile phone, before another driver alerts her to the fact there is a police car trailing behind her.

The other driver toots their horn at the woman, who then looks up before holding her phone up and then continuing with her call, laughing with her passenger.

She then drops the phone onto her lap and keeps driving.

The other driver then toots their horn two more times.

'There's a cop there,' the driver says. 'Does she not see the cop behind her?' the passenger then replies.

Video shows the woman driving a red Holden Commodore with a red P-plate attached to the front of the vehicle, reportedly near Newcastle, north of Sydney

The passenger of the other car winds down her window and leans out to speak to the P-plate driver.

'See the cop? There's a cop behind you, they're going to get you,' she said, before winding her window back up.

The footage was uploaded to the 'Bad drivers caught on dashcam' Facebook group.

The footage was uploaded to the 'Bad drivers caught on dashcam' Facebook group

The person who posted the video claimed the woman was driving dangerously.

'The thing that drew my attention... was her erratic driving before I even knew she was on her phone, and before I knew she was a red P-plater,' they said.

'Wasn't until we pulled up next to her I saw both she and her front seat passenger on their phones. Who was watching the road?'

Daily Mail Australia has contacted New South Wales Police for comment.