NSW Governor Marie Bashir is to become the second woman awarded a Dameship by Prime Minister Tony Abbott.

Prime Minister Tony Abbott has praised retiring NSW Governor Marie Bashir for her warmth, compassion and grace – awarding her Australia’s top honour.

Mr Abbott confirmed the Queen had accepted his recommendation for Dr Bashir to become a Dame in the Order of Australia on Monday.

She’s the second person to receive a Dameship awarded by Mr Abbott, following in the footsteps of former Governor-General Quentin Bryce.

The honour recognises Dr Bashir’s lifetime achievement in psychiatry, tertiary education, indigenous issues and public administration, Mr Abbott said.

The much loved NSW Governor will step down from her role in October.

“Her Excellency has brought warmth, compassion and grace to Australia’s oldest public office,” Mr Abbott said.

“She has been an advocate for the disadvantaged and marginalised in the community, particularly those with mental illness.”

Mr Abbott controversially revived the British honorific system earlier this year.

More than 780 Aussies are being recognised on Monday on the Queen’s Birthday honour list.