Obeid, 73, was sentenced in December to a maximum of five years in prison for misconduct in public office over his family's secret business dealings at Circular Quay. He will be eligible for parole in three years.

His lawyer, Guy Reynolds, SC, told the Court of Criminal Appeal on Thursday his client posed "no threat of absconding", had no prior convictions and should not be held in prison for months.

Obeid was a "man in his 70s" who suffered from medical conditions and the court would be provided with new evidence about the effect of imprisonment on his health, Mr Reynolds said.

The court is expected to hear the former Labor powerbroker's appeal against conviction as early as May.

Mr Reynolds said his client should be released on bail pending that appeal.

Supreme Court Justice Robert Beech-Jones knocked back Obeid's first application for bail last year.

An appeal to the Court of Criminal Appeal in the days before Christmas was also unsuccessful.

Mr Reynolds said the appeal against conviction was "10 times bigger than most of the things I deal with" and was likely to raise a "very major constitutional issue".

He intends to argue that only Parliament, rather than the Supreme Court, has jurisdiction to deal with cases of misconduct in public office.

The case may require a bench of five judges rather than the usual three.

The Court of Criminal Appeal fixed a tentative date of March 15 to hear the bail application.

The parties return to court on March 2.