The university is in a high-stakes contest with UrbanGrowth, the state government's property arm, which is pushing for a new station at Waterloo in the city's south instead. Cabinet is expected to consider competing sites for a train station for the metro line within weeks.

While UrbanGrowth has been relatively tight-lipped, Sydney University has released details of its proposal for 100,000 square metres of mixed-use facilities above a train station at Maze Crescent, which runs parallel to City Road.

The plans submitted to the Baird government are based on a $1 billion contribution from the private sector and $340 million from the university. The latter's funding would also go towards road improvements and better links to the Royal Prince Alfred Hospital and other nearby health facilities. If selected, the hub would be operational by 2024, in time for the opening of the station and metro line.

While the sandstone university has identified several sites, its preferred location is at Maze Crescent, near Cadigal Green and the Wentworth building. The development proposal includes at least 10,000 square metres of retail space and a multi-storey underground car park.

Other options for sites include the Regiment Building at the university, which is closer to Newtown, and Victoria Park.

The City of Sydney has not said whether it favours Waterloo or the university as a site for the metro station but has made clear that, if the latter is chosen, Victoria Park should not be the location.

In a submission, the council has warned the density of urban renewal in and around Waterloo would need to be curtailed if it was not chosen. Waterloo and neighbouring suburbs such as Green Square are on their way to having the densest populations in Australia.

UrbanGrowth has argued that the construction of a train station at Waterloo would allow more than 2000 public housing units in the inner city to be replaced with new ones.

According to forecasts from the university, patronage at a station at Maze Crescent would top almost 36,000 trips a day, making it one of the 10 busiest stations in the city.

Sydney University's director of campus infrastructure services Greg Robinson said a station at the university would help to reduce crowding at Central and Redfern stations.

He emphasised traffic volumes at a station at the university would be more staggered throughout the day because a large number of users would be students. In contrast, so-called "port of origin" stations have morning and afternoon peaks.

"It's like a heartbeat," Mr Robinson said. "It starts to ramp up through the morning with consistent volumes through the day until it drops off about 9 o'clock," he said.

The university is about a 25 minute walk from Central, while the journey takes between 15 and 20 minutes from Redfern.

Mr Robinson said the university had been talking to key commercial property developers about opening the site at Maze Crescent for a $1 billion investment in a mixed-use knowledge hub above a train station.

"We would develop a town centre over the station that would effectively be a knowledge hub. The NSW government wants to get knowledge hubs in place," he said. "People we have spoken to in the private sector have said they are definitely in to it."

It is modelled on so-called knowledge hubs in London, Singapore, Beijing and Hong Kong.

"The common theme is that you have a significant presence of industry in the middle of a university campus," Mr Robinson said. "And they are typically over or next to a rapid transport system."

The university has proposed offering 10,000 square metres of land valued at about $25 million for the site, as well as paying an estimated bill of $15 million to clear it in preparation for construction. It has already committed to nine new buildings on the campus at a cost of $750 million over the next four years.

Under state government plans, the new metro line will link Chatswood in the city's north to Sydenham in the south where it will connect to the Bankstown Line.

If the university is chosen, there are likely to be calls for another station further south, around Newtown, because of the five kilometre gap between Sydney University and Sydenham Station.

The rough cost of a new train station has been put at between $400 million and $500 million. The government plans to use funds raised from the sale of electricity assets to build the new line between 2017 and 2024.

New stations would also be built at St Leonards-Crows Nest and Victoria Cross north of the harbour, as well as Barangaroo, Martin Place, Pitt Street and Central.

The university is taking the lead on behalf of the Royal Prince Alfred Hospital and local businesses such as the Mirvac-owned Broadway Shopping Centre to push the government to build a station at Maze Crescent.