While looking further into the never ending story and Michael Ende, i found out that the main scene design for the film was Robert Klingelhoefer. He was already a popular figure with designing sccenes, but he mostly worked with theaters and such. Below are a few of the designs he did for the neverending story, you can also see that he adds characters into each design to give me the scene a sense of size.

These were some of the early scene designs done by Robert Klingelhoefer and for its time i have to say they are quite impressive.