The former HMAS Newcastle has been sold to the Chilean Navy for an estimated $45million.
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The Adelaide-class frigate, along with the former HMAS Melbourne, were handed over to their new owner on April 15.
The ships entered service with the Royal Australian Navy in the early 1990s and were retired last year.
Several countries, including Poland and Greece, expressed interest in acquiring the vessels, before they were sold to Chile in a deal worth an estimated $110 million.
"It's all good as far as I'm concerned; they are going to a friendly country and will be put to good use," City of Newcastle RSL sub-branch president Ken Fayle said.
"Both ships are in excellent structural condition. It would have been an absolute travesty if they were sunk or sent to China as scrap metal."
John McNaughton, who was Newcastle's Lord Mayor when the frigate was commissioned, said he and his wife Margaret were pleased the vessel was getting a second lease on life.
"We are delighted it's not getting broken up or sunk. Someone else is going to get good service from it." Mr McNaughton said.
"The ship is very close to our hearts; we are still in touch with all of the captains and most of the crew."
The former HMAS Melbourne has been renamed Almirante Latorre and the HMAS Newcastle has been renamed Capitan Prat.
Naval website Jane's Navy International reported that six Chilean Navy personnel who arrived in Sydney in early January tested positive for Covid-19 and were required to isolate in their hotel until the second week of April.
The sailors are part of a group of 50 specialists who are in Australia to receive technical training in preparation for the takeover of former navy frigates.
The ships will remain in Sydney until next month while training is completed, and preparations are made for them to sail to Chile.
During more than 25 years service HMAS Newcastle participated in operations in East Timor, Solomon Islands and the Middle East.
The ship made its final visit to its namesake city last July.
In the audience were 12 former commanding officers of the ship, and members of the original crew, who remembered the first entry into the port of Newcastle in 1993.
"It was the first time I'd ever entered a port and got tingles," recalled Chief Petty Officer Gary Swanton, who had travelled from Melbourne to be with former shipmates for the ceremony.
Among the 210 officers and crew who marched off the ship for the final time were 21 who were from Newcastle and the lower Hunter.
"It's very special and saddening, seeing the Newcastle family depart from one another," said Lieutenant Timothy Milas, whose parents, Peter and Sheree, had driven from Beresfield to watch their son.
The Royal Australian Navy is keeping the HMAS Newcastle's ensign in safe keeping until the next ship that bears the city's name is commissioned.
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IN THE NEWS:
Matthew Kelly
Matthew Kelly has worked as a journalist for more than 25 years. He has been working as a general reporter at the Newcastle Herald since 2018. In recent years he has reported on subjects including environment, energy, water security, manufacturing and higher education. He has previously covered issues including the health and environmental impacts of uncovered coal wagons in the Hunter Valley, the pollution of legacy of former industrial sites and freedom of information issues.
Matthew Kelly has worked as a journalist for more than 25 years. He has been working as a general reporter at the Newcastle Herald since 2018. In recent years he has reported on subjects including environment, energy, water security, manufacturing and higher education. He has previously covered issues including the health and environmental impacts of uncovered coal wagons in the Hunter Valley, the pollution of legacy of former industrial sites and freedom of information issues.
