A P-PLATER caught racing a friend at more than 160km/h in a 90km/h zone has pleaded guilty to street racing.

Lucy Pamela Ferguson was ordered today in Belmont local court to do a traffic offender's program prior to her sentencing in May.

The 20-year-old was clocked doing 166km/h on a road in Lake Macquarie in December while racing a friend back to her house.

Police pulled her over and found a seven-month-old baby in a baby capsule in the back seat.

Facts tendered to court said it was "obvious" Ferguson was attempting to race the other vehicle.

Ferguson's guilty plea prompted police prosecutors to drop the lesser charges of speeding over 45km/h and dangerous driving.