It is the latest chapter in the long saga to restore the building, which has development approval for an up-market hotel and function centre.

The property has lain vacant for several years and is falling into increasing disrepair.

A temporary fence erected around the front of the building was removed yesterday.

A spokesman for the fence hire company, ATF, confirmed it had picked up the fencing.

Property owner Sean Ngu was unavailable yesterday.

The Herald contacted several of Mr Ngu's business associates who either declined to comment or had no knowledge about the status of the building or the development.

The redevelopment was also thrown into doubt in June last year after one of Mr Ngu's companies, Newtown Developments, went into voluntary administration.

Mr Ngu said at the time that the post office was held through another company that had no financial problems.

Newcastle City Council lists the building's owner as Van New International.

An Australian Securities and Investments Commission name search yesterday showed the company was registered.

Several calls have been made for the building to return to public ownership since Mr Ngu bought it from the Federal Government in 2002 for about $2 million.

Last month, Newcastle councillors held a confidential meeting, in which it is believed they considered approaching Mr Ngu to inquire about City Hall, or another level of government, buying it.

The Herald understands that the council has since resolved not to buy the building.

Last week speculation arose that the State Government was to buy the building, but that is thought to be unfounded.

A spokesman for Minister for the Hunter and Newcastle MP Jodi McKay said any decision to buy the building would be based on ensuring the best outcome for the community and future of the post office.