The twin 30-storey public housing buildings in Waterloo will remain standing for at least another decade under the Berejiklian government's plans to redevelop the site.
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The Matavai and Turanga unit blocks will be among the last buildings demolished to make way for higher-density apartments that could top 40 storeys and the underground Waterloo metro station.
Thousands of people who live in the estate's 30-storey Phillip Street towers, smaller apartment blocks, and several flats will be relocated during the revamp, which will happen in stages over 15 to 20 years.
The new development, which will be a mix of social, affordable and private housing with more than 6000 dwellings, has drawn criticism from its existing 2500 residents.
Three design options for the project, which the government will release on Friday, reveal Family and Community Services will start the redevelopment in low-density areas of the estate.
Those residents who need to relocate in the early stages would not move until late 2019, according to the plans. They would be given six months notice.
Residents in the two 30-storey tower blocks, as well as the Cook, Banks, Solander and Marton buildings, will not need to move for at least 10 years.
"Enough social housing will be built at the start of the redevelopment for relocated residents to move back into brand new homes on the estate," the plans said.
Social Housing Minister Pru Goward said all residents would have the option of returning to the site.
The three options for the redevelopment - Waterloo Estate, Waterloo Village Green and Waterloo Park - each include at least 6500 dwellings, shops, open spaces and access to public transport.
Ms Goward said the options were designed using input from residents and the community, and further public feedback would help inform the masterplan.
“The Waterloo community told us they support living in a mixed community of private, affordable and social housing, and each option reflects this with different types of housing distributed across the precinct,” Ms Goward said in a statement.
“They also emphasised the importance of communal and open space, Aboriginal heritage and local employment opportunities.
"Now we want residents, business owners and any other member of the community to have their say on these redevelopment options.”
The Waterloo “Metro Quarter” development, proposed for a large block around the metro station, includes 700 apartments across four residential towers of 29, 25, 23 and 14 storeys.
The design options for the social housing estate redevelopment will be open for public feedback in September and October.
