One of Australia's flagship art museums has been warned it will no longer be able to deliver world-class exhibitions, as staff protest a major funding cut.

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Dozens of workers from the Art Gallery of NSW gathered outside state parliament on Tuesday, calling out the government over proposals to save $7.5 million by slashing 51 roles.

Since opening its new precinct three years ago, the gallery has become the 26th most visited museum in the world and welcomes millions through its doors each year.

But Public Service Association members have warned this could all come crashing down if the state government goes ahead with its cuts.

"The government

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