Nations of Origin, which precedes NAIDOC Week, is a multi-sports tournament for those aged 14 to 16 years. It promotes reconciliation by uniting teenagers from the Aboriginal Nations of NSW together with those of non-Aboriginal descent through healthy sporting competition.

Thirty-two futsal teams and 64 rugby league sevens sides, including six entered from the Worimi Nation, were set to take part in the event which kicked off on Tuesday.

Nations of Origin began with the futsal competition, played in Lake Macquarie, and a corroboree at Murrook Culture Centre in Williamtown.

The rugby was due to be played at Lakeside Sporting Complex yesterday and today.

Two girls and two boys' sides from the Worimi Nation were set to play in the two-day competition.

"The calibre of the kids we have playing this year is phenomenal," said Peter Kafer, one coach of the Worimi sides.

"We have a good chance at taking out the competition."

Kafer, who is also a Port Stephens councillor, was instrumental in bringing the event to Raymond Terrace this year. Hundreds of teenagers, plus family and supporters, were in Port Stephens this week for the event.

To further promote reconciliation and friendships, teams stayed at the Port Stephens Council-owned holiday parks on the Tomaree Peninsula.

The council provided $10,000 in sponsorship.

Kafer said the event was likely to return to Port Stephens in 2016 and may expand to include further sporting grounds and courts in the Raymond Terrace area.

David Hurley, the Governor of NSW, was set to present all players with their participation medals and trophies today.