An artist for more than 20 years, Coates has produced many pieces of public art but this is the first time his work has been vandalised like this.

"It's a little disheartening really," he said.

"I expected there kind of being a chance something like this could happen but I didn't expect it to happen so soon."

Coates travelled from Melbourne yesterday and spent about four hours welding the hand back onto the sculpture.

The process had to be done slowly because the bronze conducts heat well and Coates had to stop regularly to allow the weld sites to cool.

Wind and outdoor weather conditions also made the process more difficult.

The hand was originally attached to the sculpture using steel screws securing it to the bronze and concrete structure.

Coates said he hoped this would be the last repair job he would have to do.

The hand was stolen from the sculpture last weekend, less than a week after the $20,000 sculpture was put on display on the corner of Liebig and Koroit streets.

After and appeal from Warrnambool Mayor Michael Neoh and police for the hand's safe return, the piece was found on Tuesday by council staff in a public toilet near the breakwater.

Coates said he had already begun making a new hand for the sculpture but immediately made preparations to return to the city after hearing the hand had been recovered.

"I wanted to fix it as fast as I could," he said.

The rare opportunity to see and artist at work on the street was too tempting for some onlookers who stopped to watch the welding.

Curious children asked Coates what he was doing while some older members of the community chatted with the artist expressing their support for the piece.

Warrnambool Art Gallery director Murray Bowes was also on the street watching Coates work.

He said the quick reattachment was only possible because the hand had been recovered so soon and wasn't too damaged.

"He's really done us a favour and come down as quickly as he could," he said.