Australia council has pledged to raise about $6 million to rebuild the Australian pavilion for Australian artists and architects exhibiting at the Venice Biennale.

Kathy Keele, the CEO of the Australia Council - which owns and manages the pavilion - made the announcement in Venice last week.

A competition will be staged to design the building, open to Australian architects with previously designed public buildings in an international context.

A previous competition to design the pavilion in 2008 was won by David Marchetti from Italy.

Banker and philanthropist Simon Mordant announced the 'open call' for expressions of interest. However, it has been criticised by some for excluding new firms and young architects.

Criticisms were reported in both The Australian and in Fairfax newspapers, after 750 signatories to a petition had asked Australia Council to ensure the process was open to all comers. Examples such as the Sydney Opera House and Federation Square in Melbourne were cited as the result of up-an-coming designers via open competitions.

The initial estimates suggest a new pavilion would cost in the order of $4-6 million - all redevelopment costs will be met through a private fundraising program. The Australia Council will project manage the fundraising process and any subsequent redevelopment.

James Strong, Chair of Australia Council said “The current pavilion was designed and generously gifted by Philip Cox and other arts supporters. It was built in 1988 as a temporary structure — an artistic statement reflecting the nature of Australia at the time."

“We are delighted to announce that Simon Mordant - Co-chief Executive of Greenhill Caliburn, Commissioner for 2013 Venice Biennale and Chair of the Museum of Contemporary Art and member of the Tate International Council and New Museum Leadership Council - has agreed to work with us in the evaluation and the fundraising process.

“He and his wife Catriona are passionate about this initiative and have agreed to make a leadership gift of $1 million should the project proceed,” Strong said.

Mordant commmented: “The Venice Biennale is the most important event on the contemporary art calendar globally and it is critical that Australia maintains its leading presence in Venice.

“Arts infrastructure is fundamental to this and with the temporary pavilion now almost 25 years old it is timely to consider a new pavilion,”

Australia has been consistently represented in the Venice Biennale for more than three decades, through the financial support and management of the Australia Council for the Arts.

The 2011 Venice Biennale opens to the public on 4 June and continues until 27 November. Visit venicebiennale.australiacouncil.gov.au for more information.

* This article was corrected on August 3. I had incorrectly said that Ronaldo DI STASIO won the competiton in 2008, however he created and financed the 2008 competition.