Former mayor Bob Westbury said he had hoped the new library would be operational by Christmas but the council's community and recreation services manager, Steve Bernasconi, said the development application was still being assessed by Port Stephens Council.

Port MP Craig Baumann, who helped secure $200,000 for the work from the state government through the Countries Libraries Fund program, said he was "extremely frustrated" with the process.

"It's got me beat," he said.

He held the same view as Mr Westbury, when the funding announcement was made in May, and he did not know why the application to change the use from the old police station to the library was taking so long.

Mr Bernasconi said the council was working behind the scenes to get the library to its new location.

He also said at this stage there were no intentions to close the existing library.

The Raymond Terrace building that currently houses the library was built in 1946 and the demand for library services has outgrown it.

"The move to a renovated building will open up more spaces for people to meet, learn, share and communicate in a stimulating environment," Mr Bernasconi said.

The move will consolidate the Raymond Terrace Library, mobile library service, historical society and children's literacy program in one building.