The bright orange bottle shop sign outside Rutherglen's Star Hotel may be forced to come down because it does not fit with Indigo Council rules for the "historic commercial precinct".
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In a report to be presented to councillors next week, planning and statutory services manager Ian Scholes said when the pub first put up the sign in 2016, it was without the council's consultation or approval.
The sign's colour changed from the dark red and biege, which also feature on the outside of the building, to the orange, related to the Duncan's bottle shop brand.
A retrospective application was lodged in 2018, but the pub owners were told it would not be approved by the council.
Mr Scholes said "negotiations have proven fruitless" with the pub owners.
"The signage is considered to be inappropriate for the historic commercial precinct of Rutherglen," he said
"The previous signage was in an appropriate form for the heritage precinct, and had been in-situ for a number of years."
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The council's heritage advisor took issue with both the orange colour and the Duncan's logo of a man holding a six-pack and a bottle of wine.
"This building occupies a prominent position in the main street of Rutherglen and the heritage values of this building have a significant impact on the streetscape of the main street," Mr Scholes said.
"It is considered that if the application is refused, enforcement action should be commenced to require the signage to be removed."
Councillors will consider the final decision at Tuesday's meeting.
The Star Hotel was contacted for comment.
The council will also look at the wider "structural fragmentation and complexity" of tourism in Rutherglen, following a review conducted by consultants that began in April this year.
The Rutherglen Destination Management Structure Review recommended "Destination Rutherglen be immediately wound up" and replaced with a new group to represent the views of businesses, and that the running of the tourist information centre be shifted from the Rutherglen Wine Experience to the council's responsibility.
If an "implementation committee" is set up to put into place changes to Rutherglen tourism, as recommended in the review, it will cost the council $12,000.
The council meeting will be held at the chambers in Beechworth on Tuesday from 6.30pm.
