Keld Moseholm's sculpture On the Staircase will be moved to the Gorman House arts precinct from August, after years of attacks by vandals in the city.
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Arts Minister Joy Burch announced the decision to locate the bronze artwork in the Gorman House eastern courtyard on Wednesday, more than four months after it was removed from Petrie Plaza.
The sculpture depicts a series of four small men climbing a staircase and has been a target for late night vandalism since first being installed in the area in 2009.
Police helped recover part of the artwork after it was stolen in October. The young woman responsible for the theft and damage has agreed to pay for repairs.
Ms Burch said Mr Moseholm, a Danish artist, would be consulted during the repair and restoration of the sculpture.
The restoration work is planned to cost about $5000.
On the Staircase would be safe in the new location and would be securely anchored to the ground, Ms Burch said. Several other locations were considered.
"Gorman House has a got long history about supporting artists and being a creative hub here in Canberra and [On the Staircase] is a well loved, unfortunately too well loved, piece of art across our community," Ms Burch said.
"We thought it needed to have a right and fitting home. It will be here next to the contemporary arts space, in front of the ACT Writers' Hub, in this really creative hub of Canberra. I think it's the right place to be."
The 2013-14 ACT budget included an allocation of $1 million over two years to further develop Gorman House as an arts and community hub. The works are designed to encourage and facilitate sharing of administration and resources.
Construction work under way at the site will provide artists with improved working environments and studios with better amenities, as well as opportunities for interaction, collaboration and higher visibility in the wider community.
The works are scheduled to be completed in mid 2015.
Gorman House director Joseph Falsone said he was delighted by the decision to bring On the Staircase to the courtyard.
"We are very excited to have On the Staircase coming to Gorman House," he said.
"Being able to have custodianship and stewardship of this arts center and also important public artworks is very humbling."
Ms Burch described the vandal attacks as frustrating for the government and Canberra's arts community.
"It has been disappointing to see the level of vandalism. There has been a level of frustration from silly behaviour, vandalistic behaviour, that has seen this sculpture damaged," she said.
"It deserves a fitting place, a safe place, to be admired but to be kept safe as well."
