The project, kept under wraps until now, has been developed in consultation with local Aboriginal elders.

Derelict and a home for squatters in the past, St Vincent's Catholic Church in Redfern St is only a short distance from The Block, one of Australia's most disadvantaged urban areas.

St Aloysius' rector, Father Ross Jones, said Jarjum would cater for children "who need it most, those experiencing greater disadvantage [and] those who through no fault of their own have slipped through the system".

"This mission is to draw from, and share with, its students and their families the very best spiritual ideals and moral values, knowledge and learning skills, discipline, and character formation," he said.

Plans submitted to Sydney City Council showed the redevelopment would involve partial demolition of a two-storey rear building to accommodate a new three-storey addition and a reconfigured interior.

Government funding, corporate sponsorship and donations are now being sought for a Jarjum Foundation.

Jarjum will also offer before-school care and after-school activities such as sports, clubs and tutoring.

Individual pastoral care is expected to include regular health checks in association with the neighbouring Aboriginal Medical Service.

Jesuits have worked with Aborigines since their earliest days in Australia. Father Jones said there had been keen interest in Jarjum, which he hoped would open in mid-2011. The Jarjum committee is seeking partners.