If development goes ahead on prime koala habitat near Port Macquarie on the NSW Mid-North Coast, a wildlife rescue service believes the population would be further endangered

"We will lose the urban koala population in Port Macquarie, which is the biggest wild koala population on the east coast of Australia," Port Macquarie Koala Hospital president Sue Ashton said.

"To lose that would be absolutely devastating."

Mrs Ashton's concerns come after Member for Port Macquarie Leslie Williams made a plea directly to Minister for the Environment, Matt Kean ,requesting the NSW government work urgently to purchase the 200 hectare swathe of land.

Mrs Ashton and Port Macquarie resident Tony Williams have backed Mrs Williams, stating it's critical the habitat is saved.

A NSW National Parks and Wildlife Service (NPWS) spokesperson said they are aware of the opportunity to purchase this land and have undertaken an assessment of the property.

"At any point in time, NPWS is assessing a range of properties for acquisition including properties containing koala habitat," the spokesperson said.

"Purchases are prioritised taking into account a range of factors, including conservation significance and value for money."

The land, one of the largest prime residential releases left in the region for redevelopment, is currently on the market and borders the Lake Innes Nature Reserve from St Columba Anglican School through to the Lake Innes ruins.

Development concerns of koala habitat have been raised at a time when the future of the species is already in a dire situation.

According to research published by the Australian Koala Foundation, 30 per cent of the iconic species has been lost in just three years.

Mrs Ashton believes the 2019/2020 bushfires wiped out thousands of koalas across the state and unfortunately the species is not able to repopulate at a fast rate.

"Koalas only have a joey, if you're lucky, once every 12 months," Mrs Ashton said. "We won't replace the population in my lifetime."

Mrs Ashton said woes experienced by koalas has been compounded by development of their habitat.

"We're going to lose them," she said.

Port Macquarie's Tony Williams said it's a privilege to be able to see koalas in the wild within urban parts of the town.

"My grandkids are only aged seven and five," he said. "I want them to know we worked to save our environment, that we love and live here for.

"I hope we can save it for future generations. There is going to be nothing left if we allow this sort of catastrophic clearing of habitat."

According to the NSW Government website, the NSW Koala Strategy is part of a long-term vision to first stabilise, then increase, koala population numbers across the state.

Mrs Ashton hopes the strategy will address issues involving development of private land, as she said that's where 60 per cent of koala habitat is located.

Mrs Ashton and Mr Williams are urging other members of the Port Macquarie-Hastings community to write to Minister Kean's office and express their concerns.