Shops will be allowed to stay open until 10pm, seven days a week, without formal approval under sweeping changes to local planning laws proposed by the City of Sydney.

New residential developments will also need to be designed and built to "manage" noise from an existing venue in a bid to revive Sydney's night life.

Lord Mayor Clover Moore said the reforms were critical to turning around the city's beleaguered late night economy. Credit:Jessica Hromas

Lord Mayor Clover Moore said the reforms were critical to turning around the city's beleaguered late-night economy.

"Unfortunately, the lockouts have had a serious impact on Sydney's cultural life, businesses and our reputation overseas – and while areas like Kings Cross are safer, we know the balance isn't right yet in terms of Sydney's nightlife," Ms Moore said.