The station, which serves the Liverpool-Fairfield areas, occupies the rear of the Liverpool building in an extension to the memory of soldier John Edmondson VC. It is to be demolished to make way for a multi-storey, mixed-use development.

The work will restore the original building's heritage features.

Sites tipped for the station are the Casula Powerhouse Arts Centre and Liverpool Regional Museum on the Hume Highway.

The president of the Friends of the Liverpool Regional Museum and Collingwood House, Vicki Andrews, said: ``We'd be losing a valuable asset because it would take the place of the museum.

``It's an inappropriate place. The museum is already not operating properly, using only one or two rooms.''

Station chairman Victor Fenech said he had no idea when it would move and he was awaiting direction from Liverpool Council.

He said the station would not disturb the museum.

A council spokeswoman said the council was investigating the station's relocation and the timing depended on the development.

``Several options have been looked at but no decision had been made at this stage,'' she said.