Lawyers for a woman wrongfully convicted of soliciting to murder her husband have told a Sydney court the State of NSW rejected an offer to settle her malicious prosecution case.

Roseanne Beckett spent 10 years in jail after being found to have plotted to kill her husband Barry Catt but her convictions were later overturned on appeal.

In August, she was awarded $2.3 million but her lawyers today told a costs hearing they offered to settle for $2 million in May 2014.

The NSW Supreme Court was told if interest was awarded, damages could reach $4 million.

The state is seeking a stay of the judgment pending an appeal but Ms Beckett's barrister said given her client's age and the passage of time, she should be allowed to enjoy the money while she still can.

"In the interests of justice, the plaintiff should be entitled to the fruits of her victory," barrister Kylie Nomchong SC said.

Ms Nomchong hit out at allegations that her client had given false evidence, claims she argued were not supported by the malicious prosecution judgment.

But appearing for the state, John Maconachie QC stood by his claims of false evidence.

He said Ms Beckett had claimed to have been strip searched by police and that a gun had been planted in her bedroom at the time of her arrest at Taree in 1989.

"That was plainly wrong and plainly wrong to her knowledge," Mr Maconachie said in reference to the gun allegation.

He also pointed out that Ms Beckett had been unsuccessful on four grounds of her case and successful in just two.

Mr Maconachie said the state would be seeking all of its costs from Ms Beckett, because of the manner in which the case was run.

The state has lodged a notice of intention to appeal but as yet, has not revealed any grounds of appeal.

"I will be asking for a stay, principally on the basis it's a large sum of money," Mr Maconachie said.

He said this was, after all, a discussion about public money.