BUSES will be reduced throughout Newcastle's CBD once the new light rail network is up and running.
Documents obtained through Fairfax Media under freedom of information laws revealed buses will be cut to prevent a doubling up of services.
However, about 16 extra bus routes would arrive and leave from the Wickham interchange, Marketown and Broadmeadow.
Light rail will replace most bus services to Queens Wharf and Newcastle train station.
The documents, which were prepared for the transport minister Gladys Berejiklian and the NSW cabinet, also identified that parking and delays in traffic would be a significant problem with part of the line running down Hunter Street.
A draft consultation document from December also shows the state government looked at running light rail to Nobbys Beach, up Scott Street to end at Zaara Street to connect passengers to Newcastle beaches.
Other potential light rail options for the future included lines to Hunter Stadium via Hamilton, which would continue via Waratah to the University of Newcastle.
But these ideas were shelved as potential long-term expansion options.
The documents state work on the light rail network will start in early 2015 but the government said it wanted to start work by the year's end.