It is the next step after a 12-week consultation period, which ended on 30 April.
The levy would mean that pubs, bars and clubs that are authorised to supply alcohol between midnight and 6am will have to pay an annual levy dependent on their business rates.
The consultation received submissions from the Association for Licensed Multiple Operators, the British Beer and Pub Association, the British Hospitality Association, and several bar operators including Revolution, Marston’s, Punch Taverns, Spirit Pub Company and Stonegate Pub Company.
Councillor Linda Hobson, deputy cabinet member for community safety and regulation for Newcastle City Council, said: “The vibrancy and vitality Newcastle’s night time economy has a worldwide reputation and makes an invaluable contribution to the city’s prosperity.
“However, it also has less welcome consequences – noise, crime, anti-social behaviour and negative health impacts. If the levy is agreed, it will be the first of its kind in the UK.
“These proposals, which will be delivered in partnership with the police, licensing trade and residents, seek to strike the right balance by ensuring those businesses which benefit should make a limited contribution to these costs, maintaining the city as one of the safest in the country and attractive to investors and visitors.”
Meanwhile, Gloucester has decided not to progress with the LNL or a early morning restriction order.