The Mephisto, one of the German tanks, was captured by Australian troops in 1918 after it got stuck in a hole, and was brought back to Australia at the end of the war.

It is now the last remaining tank of its kind in the world.

Of Germany's A7V Sturmpanzerwagen, only 20 were ever built for war, and the Mephisto was one of them.

The tanks were cramped, hot, and noisy, making it an unpleasant experience for the crews on board, which could be up to 26 men at a time.

For many German tank crews, painting decorations on their tank was a form of both enjoyment and a way of making their tank distinguishable from others in the fleet.

One such painting can be found on the upper front panel of the Mephisto. The painting depicts Mephistopheles – the red, smiling Faustian demon.

Canberrans will now have the opportunity to delve into the history of Mephisto with the prized tank going on display at the Australian War Memorial.

The tank will be on display for 18 months as part of a collaboration with the Queensland Museum.

It is the first time Mephisto has been displayed outside of Queensland.

The tank will be take pride of place in Anzac Hall, where visitors can view it and learn more about its history through the use of touch screens and information pillars around the exhibit.

Australian War Memorial director Brendan Nelson said bringing the tank to Canberra would allow more Australians to learn about tank warfare in World War I and the engineering side of German tanks.

"The introduction of this tank into warfare when the Germans did it in 1918 had the potential to be a significant game changer," he said.

It was with fondness that Dr Nelson spoke of the Australian battalion who claimed the tank from Germany.

"It was a cheeky but courageous thing done by the 26th battalion, those Queenslanders and Tasmanians," he said.

"They snuck out under the cover of dark to recover the tank from under the nose of the Germans."

Dr Nelson thanked the Queensland Museum and its director, Professor Suzanne Miller, for working with the War Memorial to allow the exhibit.

Professor Miller said Mephisto had been beautifully presented by the Australian War Memorial.

"We are really delighted, the Queensland Museum and the Queensland government, to be working with the Australian War Memorial to present this to as many Australians and as many visitors to Australia as possible," Professor Miller said.

"We're really looking forward to seeing as many people as possible coming to visit this extraordinary object."

Transporting the tank to Canberra was no easy feat. Mephisto had to be wrapped using blankets and sheets of plastic before being transported by road for the journey south, which happened over the course of a weekend.

Upon arrival in Canberra, the difficult process of setting the exhibit up began. Two cranes were required to move the tank from the truck to a custom-made trolley which not only allowed for easy transport of the tank into Anzac Hall, but provides a base for it during its time in Canberra.

Mephisto will be on exhibit at the Australian War Memorial until mid-2017.