Murray's songs have been recorded by artists ranging from Missy Higgins and Powderfinger to Adam Brand and Jimmy Little, while his best-known song is Christine Anu's version of his anthemic My Island Home. The song featured at the closing ceremony of the 2000 Olympics in Sydney and the opening ceremony of the 2018 Commonwealth Games on the Gold Coast.

Murray, who helped form the ground-breaking Warumpi Band in 1980, is currently touring Australia performing songs from his latest album Blood & Longing, as well as his classics like My Island Home and Good Light in Broome.

Folk By The Sea co-ordinator Rod Cork said organisers were thrilled to have a performer of Murray's standing to head this year's Folk By The Sea, which will be held on September 27-29 at Kiama Showground.

"Neil Murray really is one of Australia's finest contemporary songwriters and performers," Mr Cork said.

"Originally from Victoria, he moved to the Northern Territory in the late 1970s and has been one of the driving forces in bringing Indigenous musicians to national prominence.

"We are very proud to have such an important Australian musical figure at our festival."

Mr Cork said New Zealand band Across The Great Divide, which is a fusion of Americana, Celtic and Scandinavian influences, and northern English folksinger Richard Grainger, who is described by the BBC as "the folksinger's folksinger", head a strong international line-up.

There will be a Celtic influence at this year's festival, led by perennial favourite Enda Kenny, new wave Melbourne female quartet Co-cheol and powerhouse band Highlander with its rock edge to traditional Celtic songs.

"There are 33 international and national acts, but we've also got a local presence, with 18 acts from the Illawarra," Mr Cork said. "These include Dear Violet, a talented trio of teenagers from the northern suburbs, and Kiama band The Water Runners."

Folk By The Sea will also feature a two-hour Woodstock 50th anniversary tribute show on the Saturday afternoon, with The Carefree Road Band, The Water Runners and Buck & Deanne performing songs from 1969's Woodstock Festival.

This year all three days of Folk By The Sea are ticketed events at Kiama Pavilion and surrounding venues at Kiama Showground.

The festival is presented by the Illawarra Folk Club, with support from Kiama Municipal Council and Destination Kiama.