One of Australia's largest transport projects will get more stops but a multi-year delay in changes expected to further inflate the cost of the long-awaited metro line.
Sydney Metro West, a $25 billion rail project to connect Parramatta to the city centre, has been plagued by construction delays and cost blowouts.
In plans unveiled on Thursday after a government-commissioned review, a new completion date of 2032 was set along with planning changes to add more houses around key metro stops.
Premier Chris Minns defended the hold up while the review was finished, saying it was necessary to ensure the project delivered on well-located homes.
"For the first time the city is actually marrying public-transport infrastructure with new housing," he said.
"We cannot have a situation like we've had for the last decade where we've had brand new housing and no infrastructure or major new infrastructure and virtually no new housing."
The plans for Sydney Metro will include at least nine stations with one new stop confirmed at Rosehill.
Transport Minister Jo Haylen said the change would shorten the 7km stretch between Parramatta and Sydney Olympic Park and align with plans to tunnel under the Rosehill Gardens racecourse site.
The changes follow an announcement that the site will be transformed from a racecourse into a housing precinct with 25,000 extra homes and a school.
Under the Rosehill proposal, taxpayers will not need to pay to acquire land but the state budget will be on the hook for the cost of the additional metro stop - despite it significantly increasing the value of the development zone.
A second station will also be considered, with Silverwater repeatedly cited as the most likely option.
The changes align with statewide rezoning plans to increase density and transform 40 train station precincts into vibrant town centres.
The state Labor government's first budget delivered in September put aside $13.7 billion over four years for the Metro West project, but the funding came with a caveat it could be reviewed.
The government on Thursday announced the project's timeline would be "reset" to a more sustainable date.
Initially due to open in 2028, a date later pushed back to 2030, the project is now expected to be completed by 2032.
The project review noted the "arbitrary" nature of the original timing, announced by the former coalition government.
But opposition transport spokeswoman Natalie Ward said people living along the metro route would be rightly disappointed by the delay.
"People and businesses have made decisions and investments based upon a completion date of 2030," she said.
"They've woken up this morning to find out that the Minns Labor government are delaying the project by at least two years - with no commitment that the project will be delivered in this time."
Stations on the 24km metro line are confirmed at Westmead, Parramatta, Sydney Olympic Park, North Strathfield, Burwood North, Five Dock, The Bays precinct, Pyrmont and Hunter St in the city centre.
Australian Associated Press
