The incident occurred on public land on the foreshore of Woodford Bay in the Sydney suburb of Longueville.
Lane Cove Council has launched an investigation into who is responsible for the vandalism.
The council said it had engaged lawyers and, subject to advice, planned to launch prosecution proceedings in the NSW Land and Environment Court.
Staff were made aware of the incident last week and have since been documenting and mapping every tree to ensure the correct information is gathered to assist potential future legal action.
In a statement, the council described the incident as "the worst act of environmental vandalism in Lane Cove history".
Planning Minister Paul Scully says stronger penalties may be considered. (Bianca De Marchi/AAP PHOTOS)
Mayor Scott Bennison said he was appalled by the incident.
"I'm sure I speak for all in our community in saying the mass destruction of trees at this scale is outrageous," he said.
"The culprit needs to be prosecuted to the full extent possible."
Senior government minister Paul Scully said he was familiar with similar cases across Sydney and in his home city of Wollongong that appeared to be caused by residents trying to improve their views.
"It's just not on, it shouldn't be on, and if we have to we'll address the penalties to make sure this sort of stuff isn't repeated," he told reporters on Tuesday.
"I don't think people should be rewarded for illegally cutting down trees in any circumstance."
In NSW, councils can issue an on-the-spot maximum fine of $3000 for individuals or $6000 for businesses for illegal tree removals.
Protected trees or those in heritage-listed areas attract higher penalties if removed illegally.
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