"We are supportive of diversions and NSW has done a lot ... around juveniles ... because everyone certainly doesn't need to go to jail obviously," he told Sydney radio 2GB on Friday.

"There has to be another journey for people than the justice system."

Mr Fuller was commenting on speculation that drug possession laws in NSW could be watered down as part of a state government response to a special commission into the drug ice.

Cabinet is split on the issue after debating a controversial proposal to decriminalise illicit drug possession and give offenders three penalty infringement notices before they face any criminal penalties.

After the proposal leaked this week, NSW Premier Gladys denied cabinet supported decriminalising drug possession but did flag softer options for juveniles.

"We will not be decriminalising drugs in NSW. I don't support it, my government will not be going down that path," she said.

But "for children, I think for young people, there's options there".

Mr Fuller has concerns about legitimising drug use and says "using the word legalisation with drugs I think gives drugs a good name".

Police did not want ice users on the streets, he said.

"We want them in a program so we need to get them off ice and get them back on the straight and narrow," he said.

Cabinet will consider the matter again on December 14.

Australian Associated Press