The 16ft icon was removed last month from the Millennium Ribble Link in Ingol when decay was found on the statue.

British Waterways hopes to get the wooden figure back, possibly encased in concrete, but admits funding may be an issue.

A spokesman said: "We are looking at our options, we haven't given up on the old fellow yet.

"The report is due in this week so we will study it, but it's pretty certain he will not be back in his current form.

"But it would depend on funding being available internally. I've no idea how much it would cost."

The £21,000 statue was commissioned by British Waterways as part of the £5.8m Millennium Ribble Link project, which saw Lancaster Canal connected to the rest of the UK canal network.

Sculptor Thomas Dagnall, of North Road in Bretherton, near Chorley, said: "I am waiting to hear from British Waterways and we are supposed to be having a meeting to decide which way to go.

"We could cast it in steel, iron or put some steel pins through the legs.

"Some options would mean that it would last indefinitely, and some would mean it would last a few more years."

British Waterways is awaiting the final test results but it appears that the statue – officially called Gauging the Ripple – fell victim to a fungal attack.

Ken Hudson, leader of Preston Council, said: "It is an iconic statue and I think it would be an absolute shame if it did not return.

"I'm not sure anybody knows whose fault it was, but it had to go because of health and safety.

"The Ribble Link Trust and the Millennium Lottery Fund ensured that this statue was put there and it was up to British Waterways to take care of it.

"The people of Preston expect it and I think they have a duty to put it back."