Art Gallery of New South Wales (NSW) has announced the five shortlisted Australian and international architects for stage two of the Sydney Modern Project design competition.

Shortlisted architects are Kazuyo Sejima + Ryue Nishizawa / SANAA Tokyo, Kengo Kuma & Associates Tokyo and Paris, Kerry Hill Architects Singapore and Perth, RMA Architects (Rahul Mehrotra Architects) Mumbai and Boston and Sean Godsell Architects Melbourne.

Art Gallery of NSW director Dr Michael Brand said: "Our vision is for an inspirational design open to all the possibilities for art; a museum for the 21st century that will excite and engage audiences locally, nationally and internationally.

"Each of the five selected practices demonstrated insight and sensitivity to place and a diversity of approach to creating built forms. I am confident the winner will create something quite extraordinary for Sydney."

"I am confident the winner will create something quite extraordinary for Sydney."

Set to expand the gallery’s contribution to the culture, social life and economy of the city, Sydney Modern Project will link the existing gallery with a new building to provide a facility that represents the uniqueness of the city in both form and function.

The building will feature spaces for major exhibitions and collection displays, a multipurpose theatre, learning and interactive spaces and expanded restaurant, cafe and event spaces.

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Art Gallery of NSW board of trustees president Guido Belgiorno-Nettis said: "Sydney is a global destination and art museums play an important role in that experience."

Sydney Modern Project jury selected the five architects from a longlist of 12, who were invited to participate in stage one of the competition when it was announced in October last year.

A high-level concept was developed by the chosen practices, which were assessed by the jury under a process overseen by an independent probity auditor.

The jury will select a final architectural practice to work with the gallery and stakeholders to develop a detailed design, based on the five final submissions received in April.

The NSW Government has granted a $10.8m fund for the Australian and international design competition as part of the 2014 to 2015 state budget.