Sydney casino war continues as The Star reveals plan to build a $500m hotel to compete with rival Crown Resorts.

Casino operator The Star Entertainment Group is in discussions with the New South Wales government to build a 360-room hotel on its casino complex at Sydney’s Darling Harbor.

The company are in negotiations with two Hong Kong companies Chow Tai Fook and Far East Consortium to expand the Star Casino to a six-star integrated resort.

The Star aims to take advantage of Chow Tai Fook’s more than 4 million members, of which 1.4 million are VIP members and link with China Travel, which books holidays for 50 million mainland Chinese tourists.