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Frank Gehry, the internationally renowned architect, has unveiled his latest creation: a creased building in Sydney which resembles a “squashed brown paper bag”.

Admitting that the paper bag description was apt, Mr Gehry said he drew inspiration for the £92 million ($AUS180 million) business school building at the University of Technology Sydney from folds in the skin and clothing.

"Maybe it's a brown paper bag, but it's flexible on the inside, there's a lot of room for changes or movement," he said.

"I'm pleased with it but I haven't seen it in operation yet, I haven't seen the kids here or witnessed the outlet being used … It's open-ended and it hopefully gives them the spirit of invention."

The building took more than two years to complete and its undulating walls were made of 320,000 bricks, each laid by hand.

Opening the new building, Sir Peter Cosgrove, Australia’s Governor-General, described it fondly as "the most beautiful squashed brown paper bag I've ever seen".

“It’s bold, it’s inspiring and the traditional notions of hallowed sandstone quadrangles, spires and large lecture halls as symbols of tertiary education have been reinvented, reinterpreted and reinvigorated by the building,” he said.

Timberwork staircase outside the oval classroom in the Dr Chau Chak Wing Building (Demotix)

Mr Gehry is the designer of some of the world’s most famous modern buildings, including the Guggenheim Museum in Bilbao, Spain, and the Walt Disney Concert Hall in Los Angeles.

During a visit to Sydney, he said he preferred the city’s nineteenth-century architecture to its newer glass-dominated buildings.

"They're faceless, not friendly, and cold," he said.

“There is a humanity about them and the modern buildings can be cold and off-putting so the idea of using brick … here, there is a brick culture.”

Frank Gehry unveiling the building's project in 2010 (AFP)

The new UTS building was named after Dr Chau Chak Wing, a Chinese businessman whose son attends the university and who donated more than £10 million ($AUS20 million) to the project.

"Frank Gehry is a courageous, tough and wise old man," said Dr Chau.