Lancaster City Council has decided to move the sloping mosaic outside the Arndale Centre and put it near Morecambe lifeboat station.
Coun Janice Hanson, Cabinet member for regeneration, said: “To many people the mosaic represents something of the town’s identity, but keeping it in the current location would severely limit what we can do to enhance this area of the town centre.
“The area we’ve chosen is a good location just off the promenade, easily accessible to the public. The mosaic will be on a slope as now.
“Morecambe’s motto is ‘beauty surrounds, health abounds’ and the new location, with the bay in the background, represents that perfectly.”
The council asked the public for their views on the future of the mosaic last October and November.
They asked if the mosaic should be kept in New Town Square, perhaps in a new format, or be moved entirely.
Only 16 people replied.
“The results of the consultation weren’t conclusive in terms of its future location, but most of the respondents said they wanted the mosaic to be kept in some form and I absolutely agree,” said Coun Hanson.
The public were asked for their views through The Visitor, Lancaster City Council’s Facebook page and twitter, the Lancaster City Council website, The Bay, Radio Lancashire and businesses close to the square also received letters to ask for their opinion.
“An email address was provided for people to respond to,” said a spokesman for Lancaster City Council.
“The consultation methods chosen were cost effective while also reaching a broad section of the community.”
The moving of the mosaic will pave the way for improvements to the area, including new street surfacing, street furniture, new lighting and artworks.