During the decommissioning ceremony, the Australian White Ensign was lowered from the ship and handed to commanding officer Lieutenant Commander David Murphy.
According to defence Minister Marise Payne, the fourth Royal Australian Navy ship to bear the name Sydney had a proud history, stretching more than 32 years.
Payne said: "The ship has served Australia with distinction, including during active service to Kuwait in 1991, East Timor in 1999, and subsequent deployments to the Middle East; earning a Meritorious Unit Citation during the First Gulf War."
As part of conducting maritime operations worldwide, the warship has covered 959,627nm, across operations in locations including Fiji, Papua New Guinea, and the Solomon Islands.
Commissioned in January 1983, HMAS Sydney is the third warship in a series of six multi-purpose frigates.
Based on the US Navy Oliver Hazard Perry design, Adelaide-class frigates are long-range escort ships with roles including air defence, anti-submarine warfare, surveillance, interdiction, and reconnaissance.
The ships are capable of countering simultaneous threats from the air, surface and sub-surface.
HMAS Sydney is being decommissioned to make way for the RAN’s new Hobart-class guided missile destroyers, which are designed to offer Australia with an improved war-fighting capability.
The RAN has already decommissioned the first two Adelaide-class frigates, HMAS Adelaide and HMAS Canberra.
Image: The Australian White Ensign was lowered from HMAS Sydney for the last time during the decommissioning ceremony. Photo: © Royal Australian Navy.