Plans for third Sydney Harbour crossing

A third road crossing of Sydney Harbour will be included in the state government's next plan for the city's future.

Plans for a tunnel from the Balmain peninsula to Lane Cove is to be presented as a way to bypass inner city traffic, Fairfax Media reports.

The draft proposal is a response to traffic challenges created by the WestConnex motorway plans to easy congestion from Sydney's west through inner city suburbs.