Builder Lendlease has been restrained from carrying out serious demolition work at Allianz Stadium until the end of next week following a ruling in the Land and Environment Court.

Justice Nicola Pain ordered on Tuesday that the builder be restrained from all demolition at the site except a "soft strip" until 5pm on March 8, temporarily halting plans to remove structural elements by the end of the month including part of the stadium's roof and walls.

Developer Lendlease can not carry out so-called "hard demolition" until March 8. Credit:AAP

Community group Local Democracy Matters and Waverley Council launched legal action against the NSW government in early February, arguing that the controversial $729 million project to knock down and rebuild the stadium had flawed planning consent.

The community group and council say that the stadium plan had insufficient public consultation, did not satisfy design excellence requirements and failed to consider contaminated soil on the Moore Park site.