Northies hotel has received conditional development approval to enclose the former main entrance and enlarge the gaming lounge.
Sutherland Shire Council requires a range of design changes be met before work commences at the south-eastern corner of the North Cronulla premises.
The project includes demolition of the entry structure and stairway on the corner of Kingsway and Elouera Road, to be replaced with street level planter boxes, timber screens and business identification signs.
To address council concerns, the hotel owner has already made two lots of amendments to the original plans.
Further changes relate to the appearance of a planter box, timber screens, paint colour and building work to reduce the visibility of the extension from Elouera Road and allow more width for sunken garden beds.
Timber louvres are to be only used if they will not be visible from the street and the height of the extension is to be no higher than the black entry structure over the ramp to the "golden lounge" entrance.
A flat roof form is to be adopted to match the dominant roof form presenting to Elouera Road.
A council assessment report said the application involved "a relatively minor extension to the gaming lounge", which would continue to operate in accordance with its existing approval.
The application required a variation to the floor space development standard, which was considered to be acceptable.
"The proposed alterations and additions are an acceptable response to the relevant planning controls subject to a number of design changes to ensure that the new works complement the existing building and do not detract from public domain," the report concluded.
"It is also noted that a number design and operational conditions of consent are to be imposed to ensure that the extension does not impact the amenity of the amenity of the above hotel and residential apartments."