The Superlambanana was commissioned in 1998
A replica of the 17ft (5.2m) high Superlambanana sculpture is to be created in Liverpool after six months of negotiations saw permission given.
The popular Merseyside artwork will then go on public display for the next 80 years.
The current version was limited to a 10-year display licence and will be handed back to its creator, Japanese artist Taro Chiezo.
The new sculpture will be made of more durable materials.
The artist will oversee the construction of a brand new sculpture which is expected to go on show within the next six months at a location still to be decided.
Taro Chiezo said: ''I thank Liverpool City Council for their great work in finding a happy resolution to this complex matter. I'm looking forward to a new era for the Superlambanana in the city I love.''
Superlambanana proved popular in Liverpool last year when the Go Superlambananas Parade saw 119 scaled-down models hit the city for 10 weeks in the summer and was hailed as one of the key highlights of the Capital of Culture celebrations.
Thousands of people came to see the 119 scaled down Superlambananas
The models were eventually auctioned and raised £600,000 in one night for a Lord Mayor's Charity Appeal.
Councillor Warren Bradley, leader of Liverpool City Council and deputy chairman of Liverpool Culture Company, said: "The Superlambanana has grown into a much loved symbol of the city and this deal works on all levels, for the artist, for the city and for art lovers everywhere.
"The '08 parade was a superb example of how art can be reinterpreted and regenerated and it cemented the sculpture's place in our hearts. I'm delighted that one of the artistic legacies of Capital of Culture is that this great work of modern art can be enjoyed for generations to come."
Phil Redmond, who is also deputy chairman of the Liverpool Culture Company and bought five Superlambanas at September's charity auction, added: ''The Superlambanana is a symbol as synonymous now with our Capital of Culture success as with the city and modern art."