The idea has been floated in the city for decades but has seen renewed traction after a NSW parliamentary inquiry, convened after last summer's bushfires, found koalas could be extinct in the state by 2050.

Council says an investigation into possible habitat is already underway, after incumbent councillors voted in August last year to adopt a biodiversity strategy for the city that includes exploring "opportunities to host a koala relocation project".

The strategy was updated with the koala proposal after it was raised in a submission by Jennifer McKinnon, who will run as the lead Greens candidate in this year's election.

In other news

Dr McKinnon has launched a petition calling on the NSW government to work with council to identify a site to purchase or repurpose for a sanctuary, pointing to the success of a similar project in Narrandera.

"In terms of the actual block of land where it would be, I think there has to be a consultation process between council, the state government and potentially the NSW National Parks and Wildlife Service" she said.

She said she didn't "have a ballpark figure" on how much it would cost to establish and maintain a koala sanctuary but admitted it was likely to be expensive.

Council manager of environment and regulatory services Mark Gardiner said most of the suitable vegetation in Wagga was on private land.

Mr Gardiner said the NSW government had identified "high areas of suitability in the Wagga area", but a longer term plan would involve partnership work with the state and "other key stakeholders".

"Relocation of a threatened species takes time to plan and develop, but during this time council is strategically planning to connect and enhance original native vegetation, creating wildlife corridors enabling threatened species like the koala to move throughout the Wagga LGA," he said.

Koalas were once endemic to the region but were wiped out after more than 90 per cent of their habitat was destroyed following European colonisation.

Dr McKinnon said if elected she would like to see council move quickly to establish the feasibility of buying private land for the project.

Former council director of recreation and cultural services Kerry Geale pushed for koala habitat to be planted on Willans hill in the early 1990s.

Mr Geale said he would like to see vulnerable koalas rehomed, but questioned whether the cost of establishing a brand new sanctuary so close to Narrandera would be worth it.

"I think it would be great to have it, but I think [council] needs to do a bit of soul-searching before they make a long term decision," he said.

While you're with us, did you know that you can now receive updates straight to your inbox each day at 6am from the Daily Advertiser? To make sure you're up to date with all the Wagga news, sign up for your favourite newsletters.