World-renowned architect Frank Gehry has unveiled plans for his first building in Australia - a state-of-the-art business school to be built in Sydney.

The $150 million building at Ultimo has been commissioned by the University of Technology Sydney (UTS) and has been dubbed The Treehouse for its 11-storey vertical design with branches of research and academic spaces.

The building will feature a wrinkly facade built using a combination of brick and glass.

"The hardest thing to do with modern architecture is make it human, give it character, give it feeling," Mr Gehry said.

"Historically the great artists of our history have always been fascinated with the fold. Michaelangelo did many drawings, Leonardo Da Vinci did many drawings on that topic, and I've been fascinated with that topic."

The 81-year-old designed the Guggenheim Museum in the Spanish city of Bilbao and his works - including his private residence in Santa Monica, California - have become tourist attractions.

UTS vice-chancellor Professor Ross Milbourne said the seeds were sown for a Gehry-designed landmark when the architect first visited Sydney 20 years ago.

"He gave a lecture in this very room and said he'd love to build a building in Australia, in Sydney, and went back to the United States and he said he sat by the phone and waited for 20 years and finally the call happened," he said.

The business school will be officially named after its benefactor, Australian-Chinese businessman Dr Chau Chak Wing, who donated $20 million for the project.

Mr Gehry says it is inevitable that any new building draws some criticism, but he hopes that ultimately Australia will embrace the project.

"A lot of junk is built in cities around the world and nobody really complains," he said.

"This is a small building. I don't think it is going to destroy the town, I promise."

Mr Gehry's partnership with UTS will have further benefits.

Four architectural masters students will undertake internships in Gehry's Los Angeles studio early next year.

Construction on the building will start in 2012 and is expected to be completed in time for the 2014 academic year.