A Sydney council has launched legal action to stop the NSW government demolishing and rebuilding Allianz Stadium at Moore Park.

The State Government won approval from the Department of Planning and Environment to begin demolition of Allianz Stadium at Moore Park late last year.

The government immediately signed a $730 million contract with Lendlease for the new stadium.

“This stadium will set a new standard for fan experience in Australia,” Sports Minister Stuart Ayres said.

“It will kick Melbourne to the kerb and punt Brisbane to reserve grade.”

Now, Waverley Council is challenging the proposal on the basis that Planning Minister Anthony Roberts approved the new stadium without determining it would exhibit “design excellence”.

The council has been granted an expedited hearing to be held concurrently with a separate case brought by advocacy group Local Democracy Matters, which also claims the government botched the approval process.

Waverley's Labor mayor John Wakefield says the minister’s consent should be deemed “invalid and of no effect”.

“I'm confident we have a very solid case and we are defending the principles of law, the process of law and the interests of the community,” Mr Wakefield told reporters.

A three-day hearing which is scheduled to commence on February 20.