Sydney's $11 million artwork approved

The controversial $11.3 million public artwork in Sydney's CBD has been endorsed by City of Sydney councillors despite a budget blowout of almost $8 million.

In a heated debate, Cloud Arch was approved six votes to four at Tuesday night's meeting with the 58-metre massive steel sculpture scheduled to soar over George Street near Town Hall by March 2019.

During the debate, the artwork was called many things from a tapeworm to an icon, but at the centre of the discussion was its cost, which was originally estimated to be $3.5 million in 2014.

The price hike was attributed to a rise in global steel prices, complex engineering problems and the expansion of the artwork from 28.5 metres in 2014 to 58 metres in its new design.

Lord Mayor Clover Moore defended the price tag, saying it will be a "magical transformation" that will complement the overall change on George Street.

However, not all councillors agreed.

Referencing Goulburn's Big Merino and Coffs Harbour's Big Banana, Councillor Christine Forster said she wasn't convinced it would pay off.

"I'm not convinced that Sydney's big tapeworm is going to drive quite the same visitation as Goulburn and Coffs Harbour have endured from their investments," she told the council meeting.

In approving the project, the council will reallocate $2.3 million currently set aside for a different public artwork and will use $5.5 million from its $80.4 million Public Domain program to fund the artwork.