A permanent food market is set to be part of the transformation of central Perth.

Releasing the first concept images of Perth's new City Square, Premier Colin Barnett said the plan was developed in response to more than 2000 ideas from the public.

An Australian native garden and a public Aboriginal art installation are other features planned for space near the Horseshoe Bridge.

The new area will be 25 per cent bigger than the main open space at Federation Square in Melbourne.

The Horseshoe Market place will be built alongside an urban rooftop garden, water features play spaces and the striking Aboriginal art.