The Stag & Hunter Hotel at Mayfield has lodged plans for a new concert area and upstairs bar and restaurant.
The development application proposes to move the popular music pub's stage from the Maitland Road corner of the hotel to a larger room on the ground floor.
The changes, which will cost an estimated $2.2 million, include increasing the size of the stage in a new dedicated music area.
The venue's unused upstairs hotel rooms would be demolished and transformed into a large bar and restaurant.
The Stag's patron capacity would increase to 1174 if the plans are approved.
"It's always been in the back of our minds for the last 10 years," owner Mick Starkey said.
"The key component is to utilise the venue to maximise its use. The main motivation is to improve our food offering and utilise the empty space upstairs.
"There's obviously room for an increased entertainment offering.
"We're moving with the development of the town. Mayfield's changed a hell of a lot."
The Stag stages regular gigs by local and visiting artists.
"The music area will be a hybrid space where we have the ability to do shows cabaret-style seated and standing," Mr Starkey said.
"I wouldn't imagine the capacity would be much over 300, not too much bigger than what we've got now, but more user-friendly.
"Live music is an important part of the pub, but it's not the be-all and end-all.
"We do it because we love it, and we'll continue to do that."
The development application does not propose to change the pub's 2am closing time.
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