Plans for the replacement of Sydney's "dangerous, odorous and dilapidated" fish markets have been named Future Project of the Year 2017 at the World Architecture Festival awards.

A reflective, faceted canopy extends out over a harbourside boardwalk surrounding Allen Jack + Cottier Architects' vision for the new Sydney Fish Markets.

"The jury took the view that in this category we must award the project that opens up the greatest transformation of the future in all its forms," said the judges, who described the project as a "clear winner" in its category for its challenge to the original brief.

But the design by Australian practice won't come to fruition, and instead Copenhagen-based 3XN Architects won the contest for the new Sydney Fish Markets.

The Super Jury, comprising Mark Dytham, Isay Weinfeld, and Monica von Schmalensee, said Allen Jack + Cottier Architects' proposal "transforms a world bigger than itself."

"It addresses matters of real life, visceral life, food and transport. The architects executed their role in an exemplary and inspiring fashion," they added.

OMA partner Ellen van Loon, WOHA founder Mun Summ Wong, Ian Ritchie of Ian Ritchie Architects and Christoph Ingenhoven of Ingenhoven Architects completed the judging panel.

The World Architecture Festival awards aim to showcase the best architecture of the last 12 months.

The museum was selected ahead of 12 other category winners announced on day one and day two of the festival, including Wilkinson Eyre's redevelopment of Battersea Power Station in London.

Last year the title was awarded to a "vertical school" and community centre for Melbourne, which features a staircase that doubles as a gathering space for the building users.

Dezeen is media partner for both the World Architecture Festival and Inside, which concluded today at the Arena Berlin, in Germany.