The NSW Police Force Dog Unit is to move from the Menai property which has been home for the last 19 years.
A question mark hangs over the future of the large site, with the state government saying options are being considered.
Police could use the property for another purpose, and the option of selling it is also likely to be considered.
Situated in the middle of a residential area, housing development is an obvious possibility.
The government announced $15 million had been allocated in the state budget, to be brought down next week, to purchase another site in Sydney and develop a new facility for the unit.
Deputy Premier and Minister for Police Troy Grant said, “the existing home is located in a residential suburb and no longer meets the needs of the unit”.
“The existing command centre has a number of issues including inadequate kennelling, training, breeding and storage facilities and there is no ability to expand the site or the unit’s capabilities.
“This funding will ensure the dog unit has the most modern facilities to train and deploy dogs to better respond to crime in the community.”
Mr Grant said the police force was “actively scoping a suitable site in Sydney”.
A spokeswoman for Mr Grant said no decision had been made about the Menai site and when it would be available for another use.
”Police are still exploring options,” she said.
The unit breeds, purchases, owns, trains and has overall responsibility for the deployment of specialist dogs to support police operations across the state.
Formed in 1932, it had various operational modes before being centralised at Menai in 1997.
