Green Square is expected to house more than 61,000 residents by 2030. A 'have your say day' held last year, revealed residents wanted the former hospital site to be used for creative community activities, such as painting and sketching, yoga, martial arts, drama, creative writing, and book club meetings.

The City of Sydney has responded with the announcement that $540 million will be spent converting the former South Sydney Hospital into a space for creative use.

An extension to the existing roof designed by Peter Stutchbury will provide outdoor covered space for performances, exercise classes, or a small market.

A former pathology building and nurse's quarters will front onto a new Matron Ruby Park, named after a former long-serving matron at the hospital.

"I love Peter Stutchbury's idea to create a wonderful, flowing outdoor room for these new creative facilities. I'm sure it will become a popular spot for the community," said Lord Mayor Clover Moore.

"As well as essential infrastructure like roads and footpaths, we're building a new library and plaza, aquatic centre, childcare centre and these creative community spaces where people can come together to work, acquire and refine their creative talents and just enjoy their spare time.

"Most buildings in Green Square are new, so I'm really pleased we've been able to preserve these older buildings which remind people of the area's rich and varied history," said Moore. 

The hospital site is next to Green Square railway station.