Tasmanian wool blanket on its way from Australia to princess

The Duke and Duchess of Cambridge will receive a wool blanket embroidered with the Australian floral emblem for their new bundle of joy.

A Tasmanian embroidered wool blanket has been sent to the royal baby on behalf of Australia. (AAP)

A Tasmanian wool blanket fit for a princess will be sent to the Duke and Duchess of Cambridge on behalf of Australia, as a gift for their daughter's birth.

The cot blanket from Launceston's Waverley Woollen Mills, embroidered with wattle by members of the ACT Embroiderers' Guild is the government's royal gift of choice, Prime Minister Tony Abbott has announced.

A $10,000 donation will also be given to the Healesville Sanctuary to support its work with rare Mountain Pygmy-possums - a little marsupial Mr Abbott hopes the princess can one day hold in Australia.