The city is an official sponsor of Paralympics Australia and its team for the 2020 Games, to be held between August 25 and September 6 in the Japanese capital.

"Our Paralympic team is a source of national pride for all Australians," said Sydney Lord Mayor Clover Moore.

"This sponsorship is part of our strong commitment to creating a city that is inclusive and accessible for everyone, now and into the future.

"We want to break down the barriers that prevent people with a disability from fully participating in our community, and support organisations like Paralympics Australia that aim to change people's perceptions of disability.

"We're incredibly proud to support these incredible athletes and wish them the best of luck as they compete on the world stage."

Australian athletes have contested every Paralympics since the first edition in Rome in 1960, and Sydney played host to the 2000 Summer Olympics and Paralympics.

Paralympics Australia chief executive Lynne Anderson said the support would have a meaningful impact as Sydney offers financial backing for a third successive Paralympic Games.

"The City of Sydney has been a proud partner of the Australian Paralympic Team for our past two Summer Games campaigns, and we're thrilled to have them come on board once again," said Anderson.

"The resources that we will be able to provide the team through this funding will make a positive and meaningful impact and we know it will contribute to our success at the Games next year."

Para-swimmer Tiffany Thomas Kane won gold and three bronze at the Rio 2016 Paralympics and is pleased her home city will aid her Tokyo preparations.

She said: "Competing at the Paralympic Games means everything. 

"It's the pinnacle of my sport and there will be no better feeling than wearing green and gold, and in particular, my gold swimming cap, while representing my local community.

"I'm proud to call Sydney home, and to know that my home town is behind me 100 per cent makes all the hard work leading into Tokyo worthwhile."