Christian and Muslim leaders led an interfaith peace rally in Wollongong's Arts Precinct on Friday, with dozens assembled to hear the prayers and words.

Lord Mayor Gordon Bradbery, Cunningham MP Sharon Bird, Father Ron Peters, of St Francis Xavier Cathedral, Muslim leader Gary Ismail and a large contingent of Illawarra police were among dignitaries present.

"We call for solidarity and unity in this great community," Mr Ismail said. "We unite against terror, no matter what religion."

Readings from the Bible and the Koran sounded around the square, as prayers were offered to the victims and hostages of the Sydney siege.

Cr Bradbery praised Wollongong as a city of cultural diversity.

"We come together to affirm what we stand for. We identify ourselves as Australians, no matter our background," he said.

"This is a place for everyone to find happiness and peace."

Wollongong police acting superintendent, Detective Inspector Tim Beattie, said police would not tolerate racially or culturally motivated crime.

"We have a really strong relationship with the Muslim community. We stand shoulder to shoulder with them, to make sure safety is maintained in the community," he said.

"People have the right to feel comfortable and safe, without fear of reprisal."