The iconic T&G Corner sign has see the light of day once again after builders discovered it while carrying out works at the Bank of Melbourne on the corner of Liebig and Lava streets.

Life-long Warrnambool resident Graham Kelly was shocked when he saw it, saying the sign had been covered for more than 50 years.

"I'd completely forgotten it was there, I remember it way back in the '60s," he said.

"A lot of people used to say, 'meet at the T&G corner', it was such a well-known icon in the town.

"I think they should keep it there."

Warrnambool City councillor David Owen is calling for it to be restored.

"I think there's a great opportunity here now that it's exposed," Cr Owen said.

"It depends on what the owner wants to do, but it would be lovely to have it displayed again.

"People are too quick to pass over history and to cover it over, this could be an opportunity for us to acknowledge the wonderful building and the architecture that was there."

Mr Owen said it would be a "shame" if it was covered.

"I hope we can get a bit of momentum around this, people are very interested in history.

"I think it would be a real shame to have it covered."

The T&G Mutual Life Assurance Company was an insurance company that operated in Australia and New Zealand.

The 'T' and 'G' stood for 'Temperance and General' and was founded in 1876.

It was renowned for constructing a series of landmark buildings in cities and towns in the interwar period.

The Warrnambool sign was designed by architects A & K Henderson in 1940.

Bank of Melbourne was contacted for comment.

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