North Sydney will be transformed with a $476 million contract awarded to deliver a new Sydney Metro railway station and the landmark building above it.

Minister for Transport and Infrastructure Andrew Constance said it’s another way metro is transforming Sydney.

"The new Victoria Cross metro station will be a landmark in the heart of North Sydney, giving customers more and easier public transport options as part of our plan to improve transport," Mr Constance said.

The NSW Government has awarded Lendlease a $476 million contract to deliver the station component of the new Victoria Cross Station in North Sydney - including new retail spaces and improvements to the public domain.

As part of a value capture agreement on Sydney Metro, the NSW Government will receive more than $200 million from Lendlease for the right to develop a 40-storey commercial building above the station’s southern entrance portal, and for the retail spaces delivered as part of the station.

Under this commercial arrangement, the NSW Government may also receive a share of any uplift in the value of commercial and retail buildings.

This is the second integrated station development on the Sydney Metro City & Southwest project.

"The new integrated station development will help shape North Sydney’s future, adding to the vibrancy of the area," Mr Constance said.

"New employment and retail opportunities, improved pedestrian connections and high quality outdoor spaces will add to a growing commercial and residential precinct."

"As the new Victoria Cross Station is largely built underground, the integrated station development can be built at the same time, minimising disruption to the community."

Work is already underway on the new Victoria Cross Station, with roadheader tunnelling machines working to excavate the new metro station cavern under Miller Street.