Hosting the event would mean a multi million-dollar injection and jobs across the city.

Lake Macquarie City Council said securing state government funding would seal the deal.

The council's economic development company Dantia has a funding application before DestinationNSW, and a response is expected within two months.

Dantia chief executive officer Adam Cougle said Melbourne, Sydney, the Gold Coast and Perth were also in the hunt.

"But I can tell you that Red Bull is talking only to Lake Macquarie City now," Mr Cougle said.

The championship is watched by an international audience of tens of millions, so the event would be a potential tourism bonanza for the city long after the race had finished, he said.

Aircraft in the race would use Lake Macquarie Airport at Belmont. Racing would be held over a weekend on a northern section of the lake.

Warners Bay would be among the prime spectator locations. About 100,000 spectators were expected.

Former fighter pilot and now Red Bull racer Matt Hall, who part owns the airport, has played a significant role in hatching the plan to bring the championship to Lake Macquarie.

He put Mr Cougle in touch with the championship bosses, and is effectively an ambassador for the Lake Macquarie bid.

Mr Hall - a former Morisset High School student - is the No 2 ranked pilot in the series, and is a huge drawcard.

Mr Cougle said the financial spinoffs and job creation from the event would be significant.

"And the amazing international media coverage would make it a great all-round economic win," he said.

DestinationsNSW said hosting the race would be the largest ever tourism event in regional NSW.

"This really would be a phenomenal coup for the city, if we can get it," Mr Cougle said.