A new multi-purpose community and childcare centre is planned for Darlinghurst, Sydney, following the City of Sydney's purchase of an old warehouse on Bourke Street.

The council unanimously voted to acquire the site at 277-279 Bourke Street earlier this year and settled on the property last week.

The building, adjacent to Francis Newtown kindergarten and playground, will be refurbished by the City to increase the number of community facilities in the area.

Council plans to develop and transform the four-storey former warehouse site into a new multi-purpose facility providing childcare and community services.

One proposal under consideration is a new superior home for the nearby Francis Newton kindergarten with a 40 place childcare centre, upgraded and integrated with the John Birt Memorial Playground.

New community meeting rooms and cultural facilities could also be part of the redevelopment of the site, in line with the City East Community Facilities Plan.

There is also potential for new retail spaces fronting Liverpool and Bourke Streets, which will integrate with the Bourke Street cycleway currently under construction.

If the plans go ahead, a needs study will be undertaken for Albert Sloss Reserve to help identify how it can be refurbished.