Featuring more than 200 works, Mr Guest's collection of modern and contemporary Australian paintings, drawings and sculpture spans 50 years and has a focus on abstraction and conceptualism.

Mr Guest's decision to gift his collection to Bendigo came from his love of the gallery. He has supported the gallery by offering the biennial Paul Guest Prize for contemporary drawing.

"I love Bendigo and I love the gallery," he said. "They have always been good and loyal to me. That's the way it is.

"I'm 80 now and have had a good life. I don't want there to be a sale. I feel if things go into a market, it's bad for the painters.

"To me Bendigo is the right place and in particular this gallery. (I like) to think in 50 years time that people will walk in and say 'that was contemporary art 100 years ago'."

Bendigo Art Gallery director Jessica Bridgfoot said Mr Guest's collection was an incredible gift for the gallery and the people of Bendigo.

"When Paul indicated he was willing to gift his entire collection to the gallery, there was a moment of disbelief and shock, then elation," she said.

"We have had a long working relationship with Paul. He has been a great support of the gallery and a sponsor of the Paul Guest Prize for drawing.

"We were aware of his collection and had done small exhibitions of it in the past.

"We are thrilled to welcome exhibition to gallery. It's on an epic scale and we're really excited. This collection be enjoyed for generations to come."

Mr Guest's collection started in the late 1960s when he met artist Andrew Sibley.

"It started with Andrew and the painters. I did a lot of their cases over 30 years and maintained friendships," Mr Guest said ."(This collection) wouldn't have happened but for the painters and their advice over the years.

"They talked to me about what abstraction is all about. I don't think I understood art until I spoke to the painters."

Part of Paul Guest's collection will be shown at Bendigo Art Gallery from December 7 to March 1.