A Sydney home will be sealed in a giant tent and fumigated following the discovery of a highly destructive termite, rarely found in Australia.

The Ramsgate house has been damaged by the West Indian Drywood termite, and the state government is to pay for the fumigation.

The pest is difficult to spot, but can be identified by droppings that fall through tiny holes in wood.

Pest specialist Fumapest says the entire building, a three bedroom house, will be wrapped in an airtight tarpaulin, then pumped with a fumigation gas.

The gas will stay in the tent for 24 hours, then the tarp removed and the gas expelled.

The owner of the house, who bought the property six years ago, has told The Daily Telegraph he believes the house became infected after a previous owner hung up a painting with a wooden frame from Brazil.