Plans to construct a high-rise tower above Parramatta's Roxy Theatre have been recommended for rejection by the state's heritage council, casting doubt over the building owner's push to revive it as a cultural venue.

Owner David Kingston said advice from the Heritage Council of NSW to limit the proposed tower's height meant he would consider reopening the former picture palace as a pub and nightclub.

The recommendation underscores the tensions involved in attempting to use the current wave of investment in Parramatta to promote the city as a western Sydney cultural hub while also hanging on to its heritage core.

An artist's impression of what the proposed Roxy Theatre redevelopment could look like. Credit:RAA Architects

Mr Kingston has pushed to restore the state heritage-listed theatre on George Street as part of a five-storey "leisure and cultural facility" with a 700-seat auditorium, a ballroom, function centre, eateries and shops.