Sydney is chasing the rights to host the Australian Open tennis tournament.
Fairfax newspapers report the harbour city has launched a bid to snatch the grand slam tournament from Melbourne with plans to build a multi-million dollar stadium on the harbour's edge in the inner city suburb of Glebe.
Melbourne's contract expires in 2016.
The NSW government is keen to reinvigorate tourism in the nation's most populous city following a cooling in tourist numbers after the 2000 Sydney Olympics.
"The Australian Open tennis is arguably the best annual event in Australia, I think any events company in the country would be negligent if they didn't have it on the radar," Events NSW chief executive Geoff Parmenter said.
"The Glebe Island site is the subject I think of quite a bit of interest because it is pretty much the last clear piece of prime harbourside real estate left."