Former long-serving NSW premier Neville Wran is to have a state funeral.

Mr Wran died on Sunday after a long battle with dementia. He was 87.

NSW Premier Mike Baird says the Wran family has accepted the offer of a state funeral and the date will be confirmed in coming days.

“Following my discussion with Jill Wran last night, the family has accepted a state funeral,” Mr Baird told reporters in Sydney on Monday.

“It is an entirely fitting tribute to a man who has left his mark on this state.”

Mr Baird paid tribute to the former Labor premier who led the state between 1976 and 1986.

“He was pivotal in relation to electricity privatisation on the rail networks,” Mr Baird said.

“He was pivotal in relation to the natural environment.”

Prime Minister Tony Abbott has joined leaders from both sides of politics paying tribute to Mr Wran.

“On behalf of the Australian Government I acknowledge the passing of Neville Wran AC CNZM QC,” Mr Abbott said in a statement issued on Monday.

He noted Mr Wran’s achievements as premier from 1976 to 1986 included orchestrating the redevelopment of Darling Harbour and building the Sydney Entertainment Centre.

“Neville Wran made his mark on NSW and Australia,” Mr Abbott said.