NSW body to help fast-track adoption

An Australia-first adoption research body is set to examine how to help thousands of NSW children in care find a new home and family.

The Institute of Open Adoption Studies at Sydney University, which will receive $2.85 million in state government funding for the next three years, will particularly focus on supporting open adoption.

The process allows the child, birth parents and adoptive parents to stay in contact when it's in the child's best interest.

Premier Mike Baird said the latest figures showed only 87 of the 20,000 children living in out- of-home care in the state were adopted last year.

"Every single young child on that list is so important and we can't lose that," he said on Wednesday.

Mr Baird said the new institute would provide a research base for open adoption issues and influence policy in the state and across Australia.

"To give these kids the sense that they matter. That is really what this is about," he said.

The government also announced a further $2 million in funding to help fast-track existing adoption applications.

University of Sydney chancellor Belinda Hutchinson said the institute would fill the knowledge gap on what practices work when it comes to adoption.

"We know that there's lots of parents out there who really want to be able to provide that balance and support," she said.

"So we need to be able to find the research and demonstrate the research and practices to make this happen."

The centre, which has been established in partnership with children's charity Barnardos Australia, is set to open in April.