TWEED River art gallery will temporarily lose the Archibald prize-winning portrait of artist Margaret Olley when it is transported to the Art Gallery of NSW on August 23.

The iconic artwork has been commandeered for a special state memorial service for the late and great artist to be held at the Art Gallery of NSW on August 24.

NSW premier Barry O’Farrell made the decision to display the portrait by Ben Quilty at an event described as “unusual and unique” by Tweed River Art Gallery director, Susi Muddiman.

“We regret any disappointment to visitors during that time,” Ms Muddiman said.

“But this is a very special event and I’m sure Margaret would be thrilled by the honour.”

Art Gallery of NSW spokesperson, Susanne Briggs said the portrait would be taken for about two days, then brought straight back to Tweed River Art Gallery following the state service.

“This is the ideal venue to celebrate Margaret Olley’s life and works, considering her strong association with the gallery and her many donations made to it,” Ms Briggs said.

“The Gallery houses a lot of her works.”

Her Excellency governor general, Quentin Bryce AC and the NSW premier are expected to attend the commemoration.

Director and Chief Curator of the Art Gallery of NSW, Edmund Capon said Margaret Olley was one of the most unforgettable people he had ever met.

“What a privilege to have been for so many years her friend and confidant,” he said.