Art lovers can preview a six-metre wide suspended sculpture that will greet visitors at the new Newcastle Art Gallery.

Awabakal woman Shellie Smith designed the artwork, which features 30 cast aluminium fish in a spiralling school.

Inspired by her fishing experiences with her grandmother in Port Stephens, Miss Smith's sculpture will be visible from the ground floor and the first-floor corridor which connects the existing building with the new galleries.

Artist and fabricator Julie Squires will collaborate with Smith to produce the piece, based on Smith's original fibre weaving.

Ms Smith said the sculpture was partly inspired by an incredibly rare Aboriginal artefact she was privileged to view as part of the Smithsonian collection in Washington DC.

"It's one of only a few intact possum skin cloaks in the world and features patterns and iconography of fish, people and water etched into the leather surface," Ms Smith said.

"I feel so privileged to be given this opportunity to tell a story that's really personal to me, but also very connected to Newcastle.

"I'd really like to thank the Newcastle Art Gallery Society for supporting this commission, and I'm also really grateful to the Awabakal descendants for supporting me."

Proud Wiradjuri woman, Councillor Deahnna Richardson said Ms Smith's work provides a special connection to Country.

"As part of the Newcastle 2040 Community Strategic Plan, we are committed to recognising, acknowledging and celebrating the Awabakal and Worimi people's strength, resilience and living culture," Cr Richardson said.

"Shellie's work uses First Nations traditional weaving techniques, drawing inspiration from Awabakal patterns and iconography.

"It will be a fitting tribute to the traditional owners of the land on which the Art Gallery stands."

The Newcastle Art Gallery expansion project is backed by $5 million from the Australian Government under the Regional Recovery Partnerships and $5 million from the New South Wales Government under the Regional Recovery Package.

An additional $12 million comes from the Newcastle Art Gallery Foundation, funded by the Valerie and John Ryan bequest, the Margaret Olley Trust, and community fundraising over the years.

The Foundation is seeking an extra $1 million through a public fundraising campaign.

Lord Mayor Nuatali Nelmes said this is the first of three new major works of art being planned for the expanded gallery.

"It's fitting that two of our prominent local artists will collaborate to create an inspiring welcome to the Newcastle Art Gallery, where visitors will have access to exhibitions from home and abroad," Cr Nelmes said.