The media has pounced on a discovery that a major Sydney development may be using rainforest timber from Malaysia and jeopording its "five green star" rating.

The Sydney Morning Herald reported that Central Park on Broadway was putting its target 5 Star Green Star rating at risk after it was claimed that the builders were using tonnes of plywood from a mill in Sarawak, Malaysia, which has been reported for breaches of sustainable logging practices.

Protesters from Greenpeace were arrested this week after climbing a crane at the Central Park on Broadway site unfurling a banner saying "Stop Illegal Timber".

The developer, Frasers Property said would conduct a thorough audit of all timber on the site, and find out where it was sourced from, and that the company was determined to make the development sustainable and meet the rating requirements.

The Green Building Council of Australia said it would assess the development on its environmental merits and if it could demonstrate that the timber used in the project has been certified by either FSC or PEFC, it will be awarded the appropriate points under the Green Star Timber credit.