A total of 388 trees are earmarked for lopping to expand Macarthur Grove Estate which lies north of Urana Road at Hamilton Valley.

Estate resident John Hawkins has urged councillors to keep trees to act as a sound barrier between the thoroughfare and houses.

"Urana Road is becoming very busy with trucks, air brakes and things like that," Mr Hawkins told council at a forum on Monday night.

"I believe that if I was buying a block of land there and my fence was backing on to Urana Road I'm going to complain because it will be noisy.

"We've got a green belt there of 30 year-old gum trees and a natural forest I'd say that we retain at least half of it to give us a green belt there that's a bit of a sound barrier."

Mr Hawkins, who also spoke for other residents, stressed they were not opposed to further blocks.

"We're not against the subdivision, we just want to retain some of that green belt," he said.

The proposal involves the creation of 37 lots as part of stage six and seven of the estate which was first consented to by council in 2012.

An existing street would be extended and two courts created to accommodate blocks ranging from 616 to 8869 square metres.

After hearing Mr Hawkins' concerns, councillors rejected a recommendation to approve the subdivision subject to conditions.

Instead, they accepted a motion from councillor Darren Cameron that they defer consideration until early next year and support further discussions between the council and developer about the retention of trees, green zone along Urana Road and provision of public space.

Councillor David Thurley endorsed the move.

"I think this is a great compromise, how well it turns out is up to the spirit of the developer," Cr Thurley said.

Mayor Kevin Mack also backed the move and said the "aesthetics of the estate: and "noise pollution" were important factors.

Town planner Peter O'Dwyer, engaged by the estate's developer to present a report to council on the expansion, told The Border Mail yesterday that the council's move had not been expected.

"There's a degree of surprise and disappointment," Mr O'Dwyer said.

"This application has been with the council since February."

Mr O'Dwyer said a meeting between the council and developer was being pursued, but he could not express an opinion on how the proposals were viewed.

The developer could still remove the trees, which were planted by the Albury-Wodonga Development Corporation and many of which have small diameters, under the original consent granted by the council.