Residents living near Newcastle's Fernleigh Track say the path's adjoining land is a green corridor of habitat, crucial for native wildlife and must not be developed.

State and Federal Labor MPs have today released a draft bill which calls for the protection of several kilometres of land either side of the cycle and pedestrian path.

Wallsend MP Sonia Hornery will introduce the bill into the Lower House, saying the land is zoned conservation and should not be sold by the State Government.

Whitebridge resident Carmen McCartney says a particular block in Lonus Avenue must not fall into the hands of developers.

"Crucial land for bat habitat and sugar gliders and birds," she said.

"It is a corridor that's important for feeding and breeding and their whole survival.

"I'm asking the Liberal (State) Government to listen to what this bill is saying.

"Anything that is zoned seven or conservation is kept at that level, but also kept as public land."

But Liberal Charlestown MP Andrew Cornwell says he cannot support the bill because protecting the zoning is a local government responsibility.

"I would vote against it because it's the role of Lake Macquarie Council to protect it," he said.

"On the 22nd April this year we moved a notice of motion at Lake Macquarie Council to look at increasing the environmental zoning.

"What Sonia (Hornery) is moving is to preserve the existing environmental zoning, but we actually want to increase it.

"So, once again, she's arrived at the party while everyone else is picking up the bottles."