Ms Faehrmann is leaving state politics to run for a seat in the senate.
She entered parliament in 2010 and is the NSW Greens spokeswoman on environment, transport, roads and sport.
In a statement, the party introduced Dr Faruqi as the academic director of the Master of Business & Technology Program and an associate professor at the University of NSW Australian Graduate School of Management.
She migrated from Pakistan with her family in 1992 and describes herself on her Twitter page as an “environmental engineer, climate change and education activist, proud union member and feminist”.
Dr Faruqi last year ran and lost against former Botany mayor Ron Hoenig for the state seat of Heffron, which was vacated by former premier Kristina Keneally.
Dr Faruqi and Ms Faehrmann will front a Sydney press conference together on Sunday.