The NSW Government has awarded a $299 million contract to deliver the new Waterloo metro station.
The contract will include the construction of an integrated development above and beside the station.
The John Holland and Mirvac joint venture have been awarded the contract.
As part of a value capture agreement on Sydney Metro, the NSW Government will receive $106 million from the joint venture for the air rights to develop the site.
The new station is hoped to transform the new Waterloo area and the station will give customers more public transport options to improve connectivity across Sydney.
The Waterloo Metro Quarter concept comprises five building envelopes including three towers and two mid-rise buildings above and adjacent to the station.
Under the plan, at least five per cent of homes will be affordable housing and 70 apartments will be set aside for social housing. There will be new community facilities, more trees planted, retail and office space and two new public plazas at Cope Street and Raglan Street.
Waterloo is one of five new Sydney Metro stations that will be integrated with the areas surrounding them. Developments are also planned at Crows Nest, Victoria Cross, Martin Place and Pitt Street.
Sydney Metro said final contract values may vary due to ongoing fine-tuning and optimisation involving the other major contract in the Sydney Metro project.