Workers used a crane to pull apart the lookout as if it was made of Lego.

The tower, which was built in the early '90s, will make way for a bigger and better structure, Warrnambool Surf Life Saving Club president Stephen Kerr said.

The new lookout has been in the works for the past 18 months, with the city council aiding the club in designing and sourcing funding for the project.

While some final clean-up of the old tower's remains will continue this weekend, it was hoped work on the $90,000 replacement would begin soon so it would be completed by Christmas.

Mr Kerr said alternative arrangements would be made for life-saving patrols - which will begin on the last weekend in November - including additional roving patrols and the relocation of radio equipment to the top floor of the clubhouse.

The new tower is expected to accommodate more members and to improve sight lines from the lookout.

Financial support for the new tower has come from local businesses and organisations as well as local tradespeople.