Lithgow has lost a temporary “resident” ... but the “resident” is now on its way to a better life.

For some years, the famous Ben Chifley locomotive has been a 'guest' at the State Mine Heritage Park and Railway, out in the open and with an uncertain future.

This future was finalised earlier this year when Bathurst Regional Council decided it wanted back the loco once driven by a man who graduated from a humble train driver to the top post in Australia - Prime Minister Ben Chifley.

For decades, the loco was a static display at the entrance to Bathurst Railway Station, and now it will undergo restoration to return to its former glory as a static display at a site in Bathurst yet to be determined.

The loco is now on its way to the Hunter Valley Railway Workshops and Museum to be rebuilt as a static display.

At its first meeting in February Bathurst Council voted to allocate an additional $250,000.

The Hunter Valley company had also quoted $310,000 for the engine to be rebuilt to full mainline accreditation.

This was in addition to $20,000 already allocated in this year's funding, plus an additional $20,000 promised by then candidate for the seat of Macquarie, Bob Debus during last year's Federal election campaign.