Muslim students at a Sydney public school can refuse to shake hands with women even at an awards ceremony.

The Hurstville Boys Campus of Georges River College introduced the policy to allow Muslim boys to instead put their hand on the heart as a greeting.

The Year 7 to 10 school's two principals told guests at its 2016 presentation day, including notable community members, that students may decline the gesture.

The practice comes from the Muslim teaching of hadith that states: 'It is better to be stabbed in the head with an iron needle than to touch the hand of a woman who is not permissible to you.'

Muslim students at Sydney public school the Hurstville Boys Campus of Georges River College (pictured) can refuse to shake hands with women, even at an awards ceremony

The NSW Education Department told The Australian it approved of the 'agreed protocol' that was developed through consultation between staff, parents and students.

'The department require­s its schools to recognise and respect the cultural, linguistic and religious backgrounds of all students, with the intent to promote an open and tolerant attitude towards a diverse Australian community­,' it said.

The department said principals were best placed to know the needs of their communities when following that requirement.

Such a literal interpretation of hadith, which describes the practices of the prophet Mohammed is controversial even among Australian Muslim leaders.

The practice comes from the Muslim teaching of hadith that states: 'It is better to be stabbed in the head with an iron needle than to touch the hand of a woman who is not permissible to you'.

Australia's Grand Mufti Ibrahim Abu Mohammed shakes hands with women as did his predecessor, Fehmi Naji El-Imam, and Islamic schools do not even have the policy.

Former Islamic Council of Victoria secretary Kuranda Seyit said many young students were taught to take it 'too seriously' and it shouldn't apply in a school context.

'For some young adults, when they meet people of the opposite sex, to shake someone's hand suggests a friendship,' he said.

Mr Seyit said it was an issue because Australians do not understand the custom and could be embarrassed if they were 'left hanging'.

'Students should be able to shake hands with the teacher or the principal, or receive a greeting from a visitor to the school,' he said.