While the owner of the Kennedy collection fights the federal government for an export licence, the museum says an overseas sale would be a ''loss'' for Australia.

The collection was amassed over 40 years by businessman Trevor Kennedy, pictured, and includes three First Fleet portraits, artworks such as Bertram Mackennal's profile bas-relief of Sarah Bernhardt, and about 100 pieces of gold jewellery

A bid for the works by the NMA in 2011, at below the valuation of $26 million, was refused by Mr Kennedy, who then went and found a buyer in Singapore who wants to donate the objects to a museum of south-east Asian history.

But the federal government refused an export licence for the artefacts on a technicality. Because the collection contains valuable historical items, it refused Mr Kennedy's agent, John Hawkins, permission to apply for a single export licence, instead demanding that licences be sought for each item. Mr Hawkins has appealed the decision to the Administrative Appeals Tribunal.

NMA chairman Danny Gilbert said the museum would still ''love'' to acquire the collection, which also includes furniture, silver, jewellery, pottery and porcelain.

Mr Gilbert said museum staff were watching the legal battle unfold with some interest.

''I never give up hope,'' he said. ''It's a well-known collection, a lot of the works are by very prominent craftsmen and artists and they date back into the early history of the country.

''Trevor has done an amazing job, so I give all credit to him. It would be a loss for the country if it were to leave.''

Mr Gilbert said the value of the museum's bid was confidential but spoke of the ''significant effort'' the institution had made to buy the objects. ''We would have loved to have the collection, but we couldn't afford it,'' he said.

The most significant item in the collection is the portrait of colonial surgeon John White by British painter Thomas Watling.