This is the key recommendation of a report now before both councils.

The report also details how up to $40 million worth of investment may be required to meet demand at what is Australia's fastest growing regional airport.

There has been concern recently that ongoing expansion to the airport would stretch both councils' abilities to continue funding its future growth

Port Stephens Council has already lent the airport $15 million, while Newcastle Council plans to make available an additional $10 million taking its total to a similar amount.

While rejecting any sale at this stage the report suggests other Hunter Valley councils be invited to invest in the airport.

"We will investigate whether there is interest from other Hunter councils in investing in what is essentially a regional asset," Port Stephens Mayor Bruce MacKenzie said.

Another future option, according to Port Stephens commercial finances manager Jeff Smith, was to turn the council's loans to the airport into equity.

Mr Smith said by turning the council's loans, for which it receives a 1.5 per cent return, to equity it would not be forgiving the loan but allowing for the flexibility to sell off shares while still receiving income dividends.

Mr Smith said the councils were asking the airport to take on a "more moderate" rate of growth and the relative slowing of the rate of passenger numbers would help achieve this.

The gains were it would reduce the demand for loan funds and give the airport some breathing space to build profits to help pay for infrastructure in future years.