The rail yards between Sydney's Central Station and Cleveland Street will be built over as part of a redevelopment that the NSW government hopes will attract technology companies and start-ups.

The 24-hectare Central Precinct will be the state's largest urban renewal project, surpassing Barangaroo, with technology giant Atlassian moving into a new office tower that it will share with a youth hostel.

The 24-hectare Central Precinct will be the state’s largest urban renewal project, surpassing Barangaroo. Credit:Transport for NSW

Office blocks, parks, shops and potentially residential buildings could be constructed over the Sydney Rail Yards to create "a mixed-use highly urban precinct", according to the draft strategic vision released by Transport for NSW.

"Central Precinct provides an exceptional opportunity to expand southern Central Sydney and create new space for jobs and the community by renewing 24 hectares of government-owned land," the strategic vision said.