Foreshore Park has been left a muddy mess after heavy rain lashed the grass during the Supercars pack down.
The grassed area between Customs House and the tram sheds has been torn up, with numerous tyre tracks visible over the stretch.
The park section was fenced off while Supercars deconstructed the track, marquees and grandstands after the March 10-12 Newcastle 500.
City of Newcastle said it was "aware of the damage" and had completed initial assessments of the land.
"Remediation work of this nature is not unexpected following the delivery of a large-scale event, however damage to the site has been exacerbated by the recent wet weather, which has dumped more than 85mm of rain on Newcastle during the past seven days," a City of Newcastle spokesperson said.
The work will include replacing sections of the most damaged turf.
"This process is highly weather dependent and may require some re-turfed areas of the park to be fenced off temporarily," the council spokesperson said.
Supercars is liable for the costs associated with the repair work.
The services deed between City of Newcastle and Supercars says council will provide "rectification of any parklands within the circuit so that those parklands are left in the same condition as they were prior to the staging of each event".
However the council said this means it is responsible for "wear and tear" as opposed to damage where the turf needed to be replaced.
Council will complete the remediation work after the bump-out, which Supercars said was due to be finished on March 31 as scheduled.
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