Chief Minister Jon Stanhope said the taskforce, chaired by his department's chief executive, Andrew Capie-Wood, had made ''significant progress'' in identifying suitable alternatives to the site near Macarthur, which the proponents have decided to abandon.

''They're hoping to have an initial draft report to me this week,'' Mr Stanhope said yesterday.

''At this stage we're hoping that we may be able to get a first report with options to cabinet by next week, if not by the week after.''

The proponents, Technical Real Estate, have told the Government they would like a new site by Christmas or they might take the project interstate.

Mr Stanhope said he hoped to deal with the issue at a sitting of the Legislative Assembly in the second week of December.