The Powerhouse Museum could strike a partnership with the University of Technology Sydney to allow the museum to retain a presence in Ultimo.

The two institutions are holding talks and have canvassed the expansion of the university's presence at the museum's Harris Street site, including involvement in events, programs, exhibitions, joint appointments and the use of space for classrooms or studios.

This could ultimately see the Powerhouse Museum's curatorial expertise in science, technology, transport and engineering moved to its planned Parramatta site but decorative arts, fashion, design and architecture remain in some form at Ultimo.

A UTS spokesman denied there were negotiations to purchase or lease the Harwood building, which houses the museum's collection, to be redeveloped for classes, studios or student accommodation.