A Sydney court has dismissed a legal challenge to the New South Wales government’s $730 million plan to demolish and rebuild the Sydney Football Stadium at Moore Park.

Community group Local Democracy Matters and the Waverley Council launched a legal challenge to the government’s plan to knock down and rebuild the stadium, arguing the planning process was flawed.

But the Land and Environment Court on Wednesday found the government had complied with the planning requirements.

An injunction on the hard demolition of the stadium is still in place, while Local Democracy Matters and Waverley Council consider their appeal options.

The court had previously issued an injunction on the hard demolition of the stadium until this Friday, only two weeks before the NSW election.

Thousands of seats have already been ripped out of the stadium.

Lawyers for Local Democracy Matters and Waverley Council argued the NSW government had failed to follow its own rules on public consultation and design excellence, and to consider contaminated soil at the Moore Park site.

The barrister for Infrastructure New South Wales, Sandra Duggan SC, had previously told the court that every day the hard demolition was delayed cost her client $46,000 and a delay of even a week or two would jeopardise the completion date of June 30, 2020.

Labor leader Michael Daley has previously said if his party wins the upcoming election they will not rebuild the stadium.

The matter will return to court on Thursday.

–ABC