James Packer is reportedly set to give $60 million to Sydney’s arts as a “thank you” for the chance to build his casino resort project at Barangaroo.

The gesture has come to light with NSW Premier Barry O’Farrell announcing that his government has given final approval to the $1.5 billion development.

About half of the $60 million is to be spent in Sydney’s west, the Daily Telegraph says.

“I am most excited about the Western Sydney Art Fund, for too long the vast majority of Sydney’s population has missed out on this sort of endeavour and many of these organisations have had to exist on the tightest budgets,” Mr Packer told the paper.

“I know local Western Sydney organisations will make the funds go a long way and touch many people’s lives for the better.”

The Sydney Theatre Company will receive $15 million and the NSW Art Gallery $10 million of the money.