UK's financial services giant Virgin Money has selected Sydney for its new headquarters in Australia.

The company owned by British industrialist Sir Richard Branson will also establish an expanded superannuation business in Wollongong on the NSW south coast, according to Premier Kristina Keneally.

As a result of the investment, more than 150 full-time jobs will be created over seven years.

Virgin Money has been running in Australia since 2003 and has 24 employees based in Sydney at present.

Ms Keneally in a statement on Tuesday said the expansion of Virgin Money services to Sydney will further reinforce the city's role in international banking and financial services.

"I warmly welcome Sir Richard Branson's decision to choose NSW as the headquarters for Virgin Money's banking operations in Australia," she said.

"As Australia's finance base, NSW is best positioned to capitalise on future industry performance and growth."