In a report handed to the NSW government on Tuesday, former High Court Judge Ian Callinan said a 2am lockout and 3.30am last drinks in venues with live entertainment could be trialled for two years.

He also said the government could consider shifting the the state-wide ban on takeaway alcohol sales after 10pm to 11pm and for home delivery to midnight.

But Mr Callinan warned that any relaxation of the lockout and last drinks laws "carries the risk of greater density and consumption of more alcohol" in Kings Cross and the CBD.

Relaxation of takeaway sales and home delivery restrictions "may elevate the risk of domestic violence".

The report was welcomed the Chief Executive of the Foundation for Alcohol Research and Education, Michael Thorn, who said it confirmed the laws were valid and "made the case" for extending the lockout and last drinks measures to the rest of NSW.

"It's a thorough report that largely confirms what public health, medical and law enforcement organisations have been saying," he said.

While he was "open to consideration" of Mr Callinan's suggestions, Mr Thorn said "the government should proceed with caution from here".

Keep Sydney Open campaigner Tyson Koh said he would review the report in detail but welcomed any relaxation of the lockout laws.

However, he questioned why only live-music venues would be considered for exemptions.

"I think that a 2am lockout for what is supposedly one of the most dynamic cities in Australia is quite unnecessary," he said.

"No one's answered the question of why Melbourne does fine without and still has the reputation of one of the great night-time cities."

Mr Callinan's report noted that Melbourne's entertainment precincts were less compact than Sydney's and "naturally lead to greater dispersal of people".

The government has said it will respond to the report by the end of the year.

The 1.30am lockout and 3am last drinks rules for venues in Kings Cross and the Sydney CBD and statewide ban on takeaway alcohol sales after 10pm were introduced in 2014 in response to the deaths of teenagers Thomas Kelly and Daniel Christie.

NSW Bureau of Crime Statistics and Research data shows there has been a 45.1 per cent reduction in non-domestic assaults in Kings Cross and a 20.3 per cent reduction in the CBD since the introduction of the lockout laws.

But there has been strong opposition from many licensees in the lockout zones and groups such as Keep Sydney Open, say the laws have destroyed Sydney's late-night and live-music culture.

Mr Callinan said all of the evidence considered for his report led him to the view that Kings Cross and the CBD at night "were grossly overcrowded, violent, noisy, and in places dirty" before the laws were introduced.

After their introduction "they were transformed into much safer, quieter and cleaner areas".

However, he also noted that the areas, especially Kings Cross, became "less attractive" to people "with turnovers of licensees and some other businesses, and numbers of employees of them reduced."

While there has been "no significant increase" in alcohol-related violence in areas such as Newtown, Double Bay, Bondi and The Star casino, some of the discretionary spending was likely to have shifted there.

Mr Callinan said he is concerned "live entertainment and those employed in it ... have lost opportunities of employment" in the restricted areas.

He suggests an extension of the lockout last drinks times to 2am and 3.30am could be trialled for two years in "genuine entertainment venues".

He acknowledges the difficulties in defining a live entertainment venue and noted a definition used by the Western Australian government.

Those laws say live entertainment does not include that "provided by way of recorded music (including music videos), whether or not by a disk jockey".

"A relaxation of the amendments to this effect may go some way to an orderly restoration of vibrancy and employment opportunities in the precincts," Mr Callinan said.