Bags covering the tree's root ball and an automated irrigation drip system that watered and fertilised the tree were all significantly damaged in the New Year's Day fire, while the tree's outer roots suffered scorch damage.

But a Wollongong City Council assessment has found the tree has the potential to survive because the Cabbage Tree palm is a native species that is well-adapted to surviving bushfires.

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"In addition, aside from its artistic positioning, the palm's set-up under the outer bag that people can see is that it is simply a large pot plant and palms can grow healthily for many years in pots with basic care and maintenance," a council spokesperson said.

"The work we will undertake to support its recovery is essentially no different to the periodic maintenance we would be required to undertake for a large pot plant."

The council will need to fix the automated water and nutrient system, prune the scorched roots, repack the inner bag with new soil, cover the base with new material, and treat the palm with root hormone and soil conditioner to promote root growth.

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Work is expected to be finished next week.

The council will also spray the tree's leaves with a product that will reduce its water loss during the hotter months, to help its recovery.

The spokesperson said the council had not yet finalised a cost estimate for these works.

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