The NSW budget for child protection is less than previously allocated and will result in a reduction of services, the state opposition says.

Child protection services have been allocated $750 million in the NSW state budget in a bid to overhaul the system, the Sydney Morning Herald has reported.

The funds will be spent over five years to implement reforms recommended in the Wood commission of inquiry into child protection.

But the opposition's community services spokeswoman, Pru Goward, says it actually represents a cut on the $1.2 billion the department previously received.

"This money will actually represent a reduction in the number of services that DOCS is able to provide, and when we have a record number of children in care ... that is going to be a disaster for our most vulnerable families," she told ABC radio on Saturday.

AAP