The UFC has put "a couple of dates" on "tentative hold" in early 2018 at Perth Arena, to stage an event after the State Government lifted a ban on cage fighting.

Promoters said the bout could generate $20 million for the economy.

Local mixed martial fighters said the recent decision by the new Labor Government to rescind the 2013 ban would make their discipline safer but a leading health official has condemned the move, labelling the sport as one which "makes us sick to watch".

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The UFC's head of international content Joe Carr told the ABC a 2015 bout between Ronda Rousey and Holly Holm at Melbourne's Dockland Stadium generated "about $100 million in economic impact" and a similar fight in Perth could generate "$15 to 20million" for WA.

"There's a couple dates available and we've put a couple on tentative hold," Mr Carr said.

"Obviously that [bout in Melbourne] was massive. An event at Perth Arena, particularly if it's a pay-per-view event where we can attract people from outside Australia, can generate $15 to $20 million in economic impact."

A spokesman for Perth Arena confirmed it was in discussion with UFC officials but could not confirm which dates, if any, had been put on hold.

The 2015 bout between Rousey and Holm created international headlines after Holm knocked the reigning world champion out with a solid kick to the side of her head.

A groggy-looking Rousey returned to her feet, only to be struck again, falling to the canvas and punched repeatedly until referee Herb Dean stopped the fight.

Rousey's career has suffered since and it stirred controversy over the long-term effects of the sport.

Health official slams "money-making machine"

Past president of the Australian Medical Association of WA Andrew Miller said while he appreciated the dedication and skill level of mixed martial art fighters, he likened the damage caused by concussions inflicted during bouts to the damage done by smoking.

"We now know that it's not safe to smoke and it's the same with these sorts of concussions," Dr Miller said.

"Mixed martial arts is a big, money-making machine and it makes money out people watching the spectacle of brain injury and just one of those brain injuries or just one of those knockouts can give someone anxiety, depression and lead to Parkinson's and Alzheimer's disease.

"The door has closed on all that science and we know what it's doing to people and that's why it makes us sick to watch."

Bunbury-based mixed martial arts instructor Shaun Spooner said references to the fenced arena fights being contested in a "cage" had not helped the sport shake an image of "meatheads beating each other up".

Mixed martial arts coach Shaun Spooner says the sport is more dangerous when contested in a traditional boxing ring with fighters likely to fall through the ropes onto the floor. ( ABC News: Andrew O'Connor )

"Referring to it as a cage definitely gave the sport a bad wrap, especially for anyone that doesn't know anything about it," Mr Spooner said.

"People think that mixed martial arts is just a heap of meatheads beating each other up, but it's not that at all. You won't succeed in mixed martial arts unless you're dedicated, fit and smart."

'You can't hide from it, it's a combat sport'

Mr Carr said he appreciated the concerns of health officials but said fighters were subjected to mandatory periods of "automatic medical suspensions" of up to 90 days for athletes who had suffered injuries during a bout.

"You can't hide from it; it's a combat sport, so that's going to be part of it," Mr Carr said.

"On the surface it might look like a bloody brawl in a cage, but it's not like that at all.

"These guys [mixed martial art fighters] are some of the most fit and talented athletes in the world."

WA's Sports Minister Mick Murray would not comment on whether he was aware of a potential a showcase event, but said, should the fight proceed, it would be subject to a range of conditions put in place by the state's Combat Sports Commission (CSC).

"The CSC has responsibility for monitoring bouts, making sure appropriate medical checks are made before and after bouts and ensuring referees and other officials are of the highest standard," Mr Murray said.

"The decision to hold any UFC bouts at Perth Arena would be made on a purely commercial basis. Event announcements are made by promoters and venue operators."