Sydney's inner east could secure its first new public primary school in decades under plans that would also bring a high-rise to Randwick.

The state government is negotiating a deal to use part of the Royal Randwick Racecourse site to build a new school, documents obtained by Fairfax Media under freedom of information reveal.

Potential site for new public primary school: Royal Randwick Racecourse. Credit:Janie Barrett

Land between High Street and Wansey Road that the Australian Turf Club ''has identified as surplus to their future needs'' has also been earmarked as a suitable site for 2200 apartments, according to a letter by former planning minister Brad Hazzard to former racing minister George Souris.

The proposals are part of a bid to increase the density of Randwick by designating part of the suburb an ''urban activation precinct'' - an area rezoned to support high-rise housing and jobs near transport links.