I do not believe this to be the case. Unless the design plans have changed dramatically over the past few months, the light rail terminus is on the Southern side of the interchange with the Heavy Rail terminating on the Western side. The light rail then crosses Hannell St (site of the old gates) and continues along the old corridor before turning onto Hunter St at Worth Place.
Screenshot of the interchange from the flyover vid posted on youtube a few months ago by TfNSW:
The graphic shows the terminus on the west side (south-west might be more accurate). The shadows indicate this. The tram is crossing Stewart Avenue heading south-east. Mayfield is to the north-east.
Probably closer to SSW but anyway I haven't heard of that extension to Mayfield myself...personally, I think it would make more sense to have an extension out to the Stadium and JH Hospital which itself would present engineering challenges