Newcastle one-punch killer hung jury

A jury has been discharged after failing to reach a verdict at the trial of a NSW man accused of the one-punch murder of his mate after arguing over a missing tobacco pouch.

Shane Holmes, 45, had pleaded guilty to the less serious charge of manslaughter, admitting causing his friend Chad Hadden's death but denying an intention to kill him.

The NSW Supreme Court jury in Newcastle retired on February 20, but Justice Stephen Campbell on Monday discharged them after they failed to reach a verdict on the murder charge.

He adjourned the case to April 3 for arraignment for a retrial.

The prosecution had alleged Holmes intended to cause serious bodily harm when he attacked Mr Hadden on January 14, 2018, and went too far.

The pair had been thrown out of Newcastle's Queens Wharf hotel for wrestling over the missing tobacco pouch.

Mr Hadden never fully regained consciousness and died five months later.

The defence had submitted Holmes had over-reacted and lashed out at his friend without any thought at all.