NSW Premier Gladys Berejiklian announced the gifting of land to the koala hospital during a visit to Port Macquarie earlier this week.

"This gifting of state government land back to the koala hospital is on behalf of the people of NSW - it's not from the government, or it's not from certain individuals - it's a gift from the people of NSW to protecting our much-loved species and acknowledging the great work that happens here," she said.

The land gifting measure follows a $5 million state government grant, announced in 2019, towards a redevelopment to transform the koala hospital into a world-class tourist attraction.

The upgrade will provide a raised walkway through the trees, new rehabilitation and permanent resident koala yards, training, research and education spaces, a shop, koala museum and theatrette.

Koala Conservation Australia president Sue Ashton thanked the people of NSW, on behalf of volunteers and staff, for entrusting the koala hospital with the care of the gifted land.

Port Macquarie Koala Hospital clinical director Cheyne Flanagan said they were really pleased National Parks and Wildlife Service supported the change.

"It will make it a lot easier to do the new works and just easier for everybody," she said.

"We will 100 per cent look after the land to the best of our ability, forever."