But in the wake of uncertainty about what was next for these last two Lady-class ferries after they were retired from service on Sydney Harbour in 2017, at least one of them is returning to the waters of the Emerald City.

The NSW government has announced Lady Northcott was being given a "new lease of life" and its new owner would be Aboriginal not-for-profit organisation and tour operator, Tribal Warrior.

Tribal Warrior CEO, Shane Phillips, said the "iconic vessel" would be used for Sydney Harbour cruises, helping tell the stories about the waterway's "amazing history", as well as possibly be used on ferry runs.

"Rather than cut this vessel up, we'll save it," said Mr Phillips.

Transport Minister Andrew Constance said in a statement this was a "fantastic outcome", placing Lady Northcott back on Sydney Harbour and generating career opportunities and maritime experience for young Aboriginal people.

"This is really exciting news because we will see the beloved Lady Northcott back out on the harbour, taking passengers on trips to promote Aboriginal history and cultural experiences," Mr Constance said.

"Lady Northcott will not only be great for tourists and locals, but she will provide Aboriginal youth with specialised training programs while out on the water."

Ferry historian Bill Allen has welcomed the announcement. He has connections with Lady Northcott back to its construction at the Carrington Slipways shipyard at Tomago, with his daughter launching the ferry when it splashed into the Hunter River in 1974.

"It's where she belongs, back in Sydney," said Mr Allen of the ferry that gave more than 40 years' service, before it and the Lady Herron were towed north in April 2020 to become Ladies in waiting in Newcastle, as the government looked for new owners.

"That's the tragedy of the whole matter, they've just sat there," Mr Allen said.

The future of Lady Herron, which was built at Newcastle's State Dockyard, is looking less assured.

"Sadly, the feedback we have received so far is that the Lady Herron no longer meets contemporary standards to make a commercial operation viable," Mr Constance said.

If a new home can't be found in the next few months, the ferry will be subject to a "planned disposal", which the Minister's spokesperson said meant its parts would be recycled and reused. For now Lady Herron stays in Newcastle.

"It would be nice to see some other charity use her, because they're great old vessels," said Shane Phillips. "To keep them as part of the history and community of our waterways is important."

Tribal Warrior plans to return Lady Northcott to Sydney during National Reconciliation Week, beginning May 27. Before then, Shane Phillips said, a maintenance team would come to Newcastle to work on the ferry.

The NSW government has given a $300,000 grant to help the Lady-class ferry be prepared for the next chapter of its life.

Shane Phillips said he hoped there would be a ceremony for Lady Northcott before the ferry cruised out of Newcastle.

Read more: Iconic Sydney Harbour ferries still in Newcastle

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