The historic Awaba House would be restored with a terrace for outdoor dining, a boutique restaurant and a covered walkway under plans released by Lake Macquarie City council.
"The concept design is based on extensive community consultation we've undertaken for the site since fire caused major damage in August 2019," Lake Macquarie council property and business development manager David Antcliff said.
"We're proposing to retain and restore the historically significant external form and features of the building, with changes to the internal layout for a modern restaurant and function space.
"The plans also include a small kiosk and a new terrace to the east of the building providing sheltered outdoor seating, where diners will be able to soak up the stunning lakeside vistas."
The heritage building, which is adjacent to the recently renovated Museum of Art and Culture, was acquired by the council in 1995 and was being used as a café, restaurant and function venue up until the fire last year.
Lake Macquarie Mayor Cr Kay Fraser said the revitalisation project would deliver a more vibrant outdoor dining experience and create a venue that serves be a tourism drawcard.
"We need to make the most of this prime location and enhance the experience for those visiting our city through a contemporary, vibrant and engaging design," Cr Fraser said.
Feedback about the concept plans can be provided on the council's consultation website - shape.lakemac.com.au/revitalising-awaba-house - up until Wednesday, September 16.