If James Packer does not want to build a casino and apartment complex without reducing its impact on public land, the NSW government should tell him to walk away from the project, according to the head of the state's peak body for architects.

The Secretary of the NSW Department of Planning, Carolyn McNally, on Tuesday released a report that rejected the most substantial changes to the apartment complex and casino recommended by an independent design review panel.

The decision has angered Shaun Carter, the president of the NSW Chapter of the Australian Institute of Architects.

"The worst thing for planning is to have the appearance that big money can buy big influence - but that is the perception that has been created," said Mr Carter.

"But to add insult to injury, you employ a professional review panel who recommends that you've got to pull the building back and then you totally disregard this expert review panel."

A major subject of dispute over the Crown development is the scale of the podium to sit underneath the 71-storey tower. The podium is planned to sit near the harbour foreshore, an area originally reserved for a continuous public boulevard.

A design review panel of government architect Peter Poulet, Meredith Sussex and Shelley Penn said in November that the combined effect of the podium's proposed location and bulk "was not conducive to the achievement of coherent waterfront open space".

That panel recommended that the podium be set back to allow a "single and continuous, waterfront public domain".

But in response, Crown said that a reduction in the size of the podium would threaten the size of its gaming facility and the future of the project.

In its report on Tuesday, Ms McNally's department recommended only minor changes to the podium.

Mr Carter said another option would have been to call Crown's bluff.

"I don't know why you'd have an expert panel and then disregard their advice," Mr Carter said.

"The look of the building is not in question and the quality of the design is not in question, but the issue here is the planning of public domain versus private interest.

"Let him walk away. I look at that site and would say that would have to be one of the highest-value sites in the CBD, why should we be concerned about a developer getting upset when they're not getting their way? We could sell it to someone else."

In response to the design review panel, Crown suggests a number of changes to the podium that did not require a significant reduction in space or change of position. These included a change in materials on one of its sides, and a "recess" carved into the structure.

Following these suggested changes, Ms McNally's department said it considers "the proposed scale of the podium is acceptable and that it has an appropriate relationship to the public domain and foreshore."

However, the project requires a number of further steps before it can be approved. Both the development application for the Crown casino and apartment complex and an application for broader changes to that section of Barangaroo need to be approved by the government's Planning Assessment Commission.

The changes also include public access to the upper levels of the building, via a new observation area accessible by guided tours.

A spokesman for Crown said the company had worked with its architects to address the Department of Planning's conditions.

"Our updated designs, including significant changes to the hotel podium, will help ensure Crown Sydney is embraced by the local community and visitors as one of the world's best hotels and architectural icons," the spokesman said.

"The observation deck at the top of Crown Sydney will be an iconic experience for Sydneysiders and an additional tourism asset to attract interstate and international tourists."