"As she has undertaken her duties over the past 12 years Governor Bashir has displayed a passion, dedication and work ethic that has impressed and endeared her to people throughout NSW," said Mr O'Farrell, who was joined at the announcement by Strathfield MP Charles Casuscelli.
"Naming this school after Professor Bashir honours her outstanding contribution to NSW and is a reminder that she achieved all her distinctions after being educated at public schools - from Narrandera PS to Sydney Girls HS," he said.
"Throughout a varied career in medicine, including general practice, psychiatry and Aboriginal health, Professor Bashir has always taken a particular interest in young people.
"Professor Bashir has turned the Governor's annual meeting with secondary school captains from across the State into one of the most popular events on the student calendar.
"So it is very fitting a new public school in Strathfield will bear her name and be called Marie Bashir Public School."
Mr Piccoli said the name was a fitting tribute to Professor Bashir’s career.
"I am delighted that the name of such an illustrious public figure, who started life in the electorate of Murrumbidgee which I represent, will be attached to a public school," Mr Piccoli said.
"This is another example of the NSW public education tradition of honouring great Australians."
Professor Bashir was born at Narrandera in NSW, graduated from the University of Sydney, and is a Fellow of the Royal Australian and New Zealand College of Psychiatrists.
In 1987 she was appointed Director of the Community Health Services in the Central Sydney Area, with an emphasis on early childhood services, the health needs of migrants, Aboriginal Australians and the elderly and communicable illness.
Her Excellency was appointed Clinical Professor of Psychiatry at the University of Sydney in 1993, and in 1995 established the Aboriginal Mental Health Unit in partnership with the Aboriginal Medical Service, Redfern.
Professor Bashir was appointed Governor of NSW in March 2001.
The NSW Government bought the school site in Albert Road, Strathfield, for $25 million after it closed as the Sydney Adventist College in 2012. Building a new school of the same size would have cost in the vicinity of $38 million.
The new school will serve the Strathfield and Burwood Local Government Areas, opening at the start of Term 1 2014.
The school is taking enrolments across kindergarten to Year 6 for 2014.
A $1.3 million minor capital works program is underway at the school to upgrade.