'Return Goat Island' to Aboriginal people

Goat Island in Sydney Harbour will be returned to Aboriginal ownership if Labor wins the upcoming NSW election, opposition leader Luke Foley says.

Newly elected leader of the NSW Labor Party Luke Foley.

The island - the second largest in Sydney Harbour - has been entirely owned by the state government since 1908.

On Sunday, Mr Foley said the island, known traditionally as Me-mel, would be transferred to the NSW Aboriginal Land Council if Labor takes office on March 28.

"I am honoured to announce that a Labor government will return Goat Island ... to the Aboriginal people of NSW," Mr Foley said in a statement.

"It heralds the next chapter in the unfolding story of NSW - and our journey towards true healing as a unified and reconciled nation."

The island is located about 600 metres northwest of Balmain East public wharf. It is about 300 metres wide and 180 metres long.

One of eight islands in the harbour, it is currently managed by the NSW National Parks and Wildlife Service.

Labor says present operations on the island "will be respected" if the change in ownership take place.

Mr Foley, deputy opposition leader Linda Burney and former Prime Minister Paul Keating were expected to address media at Goat Island on Sunday.