Details of the policy, which will be discussed at Monday night's city council meeting, were made public on Thursday and reveal an audit of signage across sporting facilities would be conducted to identify those that don't comply.

Signage promoting fast food providers that was highly recognisable to children and which promoted unhealthy food choices must not be fixed to council property, the policy says.

"Sponsorship signage for these providers must be of temporary nature and removed at the end of game day," it says.

"As a guide, this relates to foods lacking in nutritional value and which are high in calories, sugar or fat. Council officers will provide approval for which signage can be fixed and which must be temporary."

Member for South West Coast Roma Britnell said she had concerns about the implementation of a policy that would restrict clubs from placing sponsorship signage at their grounds.

Ms Britnell said the council was seemingly implementing a draft recreation signage policy restricting Warrnambool Football Netball Club and East Warrnambool Football Netball Club from displaying sponsorship signs at the redeveloped Reid Oval, especially on fencing around the ground.

"This policy has not been signed-off by councillors - they haven't even seen the draft policy yet - but it is my understanding the two tenant clubs have already been advised restrictions will be enforced," she said.

Ms Britnell said after discussions with East Warrnambool Football Netball Club's representatives she was concerned about the club's ability to reform for the 2023 Warrnambool District Football Netball season if they could not display sponsors' signs at Reid Oval.

"East Warrnambool has been in recess for two years now and they are trying to get up and going again - yet the council is hindering them from one of their main avenues of raising revenue," she said.

"They have been told verbally that their signs will have to come down, however have received no formal notification yet. But it is still very difficult for the club to maintain its current long-term sponsors or send out new sponsorship proposals if their signs can't be displayed."

Ms Britnell said she feared the signage policy would be implemented across all Warrnambool City Council-owned grounds.

"The past couple of years have really crippled sporting clubs with entire seasons cancelled or finals cancelled," she said.

"We should be doing everything possible to ensure these clubs have the ability to raise funds - not putting roadblocks in their way."

The council says its new policy aims to provide a consistent approach across the council's 15 recreation reserves and not to deny clubs the opportunity to "derive some income" from sporting signs.

Ms Britnell said she hoped the draft policy, once it was considered and voted on by the councillors, took these considerations into account.

"It would really be disastrous for clubs' abilities to raise much-needed funds if the policy extends to all grounds managed by Warrnambool City Council," she said.

"These sponsors' signs aren't just a way to raise revenue - they are also a way for local businesses to connect with the sporting clubs."

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