The Federal Environment Minister, Peter Garrett, has okayed a report into the feasibility of creating a new 23,151 square kilometre marine reserve stretching from Swansea to Wallabi Point, north of Forster.

The reserve if created would extend from three nautical miles to 120 nautical miles off shore.

Nelson Bay charter boat operator Tim Dean owns Calypso Fishing Adventures and fears any restricted zones in waters off the Port would hurt the industry.

"It won't just impact on my business," Mr Dean said.

"Who's going to eat in the restaurants, book the units, or the caravan parks?

"Fisherman pour thousands of dollars into the area every day.

"This is the best game fishing in Australia and they (the government) have targeted it."

Newcastle and Port Stephens Game Fish Club president David Litchfield said he suspected authorities would target the most prolific game fishing areas.

"They'll probably do what they did with the Port Stephens Great Lakes Marine Park and that's take away the best spots and leave everything else," Mr Litchfield said.

Some operators suspect the move by the Federal Government is to shore-up the support environmentally-conscious voters.

The interclub game fish tournament, run by the NSW game fish association, injects an estimated $3.5 million into the Port economy each year.

The association's president Don Goswell said he was definitely concerned.

"We certainly don't want to see any closures to the waters off Port Stephens," he said.

Port Stephens Council's tourism manager Neville Deuis said the interclub, other tournaments and recreational fishing all contributed significantly to the local economy.

"This certainly could change the face of the game fishing industry as we know it, probably to the detriment of the local economy," he said.

Mr Dean and Mr Goswell, along with other industry representatives, were expected to meet with members of Mr Garrett's staff this week to discuss the proposal.

The government is expected to release a draft marine bioregional plan early next year.