Following its shock at Port Stephens Council calling for expressions of interest to take over the licence of the Salamander Bay-based club in August, Port Stephens Sailing and Aquatic Club president Lachlan McPherson said he believed that the appointment was a good outcome for all.

"Many are excited that a professional and well-resourced group who share the same objectives, to further promote sailing and aquatic sports from this community asset, have the licence," he said. "Moving forward, this will benefit the whole Port Stephens area and sailing in general."

Port Stephens Council announced on Wednesday that it had selected the Wickham-based Newcastle Cruising Yacht Club as the new licensee and operator, which will take effect on November 20.

It will be the first time in 40 years that the club will have a new operator.

It came after the council took the unusual step to seek a new operator due to "significant concerns regarding the health and safety protocols of the occupancy licence".

The sailing and aquatic club emphatically denied that the club had failed to comply with the council's health and safety concerns, saying it was "simply incorrect" and that the club takes "health and safety obligations seriously".

Regardless of the back and forth between the club and council, the tender process was completed.

Tim Crosdale, the council's corporate services group manager, said the appointment is the start of an exciting new chapter for the club.

"After reviewing the submissions received as part of the expressions of interest process, we decided that Newcastle Cruising Yacht Club is the preferred proponent for the new licence of the facility," Mr Crosdale said.

"The NCYC brings a wealth of knowledge, expertise and potential benefits to the community that made the decision a unanimous one.

"As well as continuing community sailing programs, the new operators are excited to create a destination to encourage visitation to the area and support our local tourism and business economy. NCYC will work with the current operator to ensure continuity."

Newcastle Cruising Yacht Club chief executive officer Paul O'Rourke previously told the Examiner that, if successful in its tender, the club proposed to use its vast resources to bolster and grow the sport of sailing in Port Stephens.

"Our junior numbers have grown significantly in recent years and we now have sailors of all levels coming from the wider Hunter area, Central Coast and Port Stephens," he said.

"If successful, we would expect to have between 40 and 50 sailors, juniors and adults, attending weekend regattas and trials in beautiful Port Stephens."

More to come.