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Danish royals attend Sydney fundraising dinner

Princess Mary of Denmark arrives at the Australian Red Cross 90th Anniversary Gala in Sydney.Reuters

The Danish royal couple have spent the fourth night of their official Australian tour at a gala fundraiser in Sydney.

Crown Prince Frederick and Crown Princess Mary were the guests of honour at the Australian Red Cross 90th anniversary dinner.

The function was also the official launch of the aid organisation's Red Cross Calling Appeal.

New South Wales Premier Bob Carr told guests it was fitting for the Crown Prince to officially launch the appeal because of his connection to the charity group.

"It is very fitting that he do so because among his many duties in the service of noble causes, His Royal Highness is the Commissioner of the Danish Red Cross, continuing a tradition in the Danish Royal Court of supporting the oldest, the greatest of humanitarian movements," Mr Carr said.

The celebrity guest list for the event included Olivia Newton John, Alex Lloyd and several former prime ministers.

Newton-John says while she has performed in front of royalty before, it was a thrill to sing for an Australian Princess.

"It's very exciting that Australia has gained a Princess and so has Denmark - so I think that she shows a lot of class and incredible brains to learn another language," she said.

Singer Katie Noonan was also one of the singers Crown Princess Mary selected to perform at the dinner themed one enchanted evening. Delta Goodrem also performed at the event.

Sixteen children carrying Danish and Australian flags came to officially welcome the royal couple.

There were 850 guests at the function, all paying between $450 and $1,000 a ticket.

Today the Crown Princess will visit the Mental Health Foundation and later the Royal couple will attend a state dinner at Government House.