Newcastle council will investigate teaming with a private partner to allow advertising on bus shelters, public toilets and billboards in exchange for asset upgrades or revenue.
The plan was put forward in a notice of motion by the city's Labor councillors, and would involve the city's 56 public toilets, 389 public bins and 1600 bus stops including 161 bus shelters.
Councillor Elizabeth Adamczyk said a number of bus stops were "reaching the end of their useful life" and council was undertaking an audit to identify in use shelters.
"But due to a low previous return on investment, City of Newcastle has withdrawn from advertising on city-owned bus shelters and the City of Newcastle is ineligible to receive funding available for bus shelters," she said.
"This will provide an opportunity for the private sector to provide something of useful benefit to the city in return for some advertising."
She said Sydney and Inner West councils had partnered with the private sector to deliver street furniture and out-of-home media.
But the idea drew the ire of the Greens, who said they were surprised to see the motion put forward and could not support privatisation of council assets.
"Privatisation removes the ability for community to have an input," councillor Charlotte McCabe said.
"The last thing I want to do is expose our community members to more advertising, which intentionally, subliminally often tries to convince people to buy things that they don't need.
Councillor John Mackenzie said the proposal was "completely regressive".
"There's a large body of evidence, psychological and social evidence and research which has been conducted, which I'm surprised you haven't availed yourself of, that demonstrates that out-of-home advertising is particularly pernicious, because other forms of advertising can be turned off. That's particularly critical when it comes to the exposure of children to advertising."
Councillor Carol Duncan said the motion asked for concerns to be taken into consideration, and to investigate what's possible. "That doesn't mean that we will end up doing it," she said.