The 100-year-old Kyeemagh War Memorial is to be relocated by Bayside Council to the Pemberton Reserve, Sans Souci where it will be under the custodianship of the Ramsgate RSL Sub-Branch.
The memorial is expected to be in its new location in time for Anzac Day.
"This decision means the monument will remain in Bayside where it will be open to ongoing appreciation and recognition by the community." Mayor Joe Awada said.
The historic war memorial will also be assessed by NSW Heritage Stoneworks before it is restored and relocated.
A $3,000 grant for this assessment was secured from the NSW State Government, under the Community War Memorials Fund initiative.
Also the RSL Sub Branch contributed $50,000 to the project which is being undertaken in partnership with Council
This will be the third move for the war memorial.
The lone soldier that makes up this memorial was originally part of a much larger WWI Memorial first dedicated in August 1919.
It was erected by NSW Government Tramways Department on the site of the Wolli Creek Tramway Depot at Arncliffe.
For many years it stood a landmark in the section of North Arncliffe that has since been redeveloped and renamed Wolli Creek.
The tramway depot stood between the railway line and Tempe House.
After World War I the Tramway Board erected a memorial to its members who had fought in what was called the Great War.
The monument featured a statue of a Digger standing on top of a circular base which contained plaques listing the names of the tramway and railway employees who had fought and died in the war.
The names included those local residents who worked on the trams or the railways.
The memorial was first dedicated on August 24, 1919 and the original dedication by the Chief Engineers Branch of the Department of Railways and Tramways read: "This monument was erected by the staff as a tribute to the Honour and Memory of their Comrades who fought and died in the Great War 1914-1919".
The Australian soldier on top of the war memorial was given to the Kyeemagh RSL in 1970.
Kyeemagh RSL and Community Club was closed in October 2018 after 53 years of operation.
Following the closure one of the priorities was to find a new home for the war memorial which features the figure of an Australian soldier with reversed arms who has done his duty by ''standing guard'' over many years.