Mayor John Dal Broi said council bought it as part of its long term vision to develop a cultural precinct in the CBD.

He said council would seek to lease the historic building in the short term.

Councillor Dal Broi said the building, located at 239 Banna Avenue, was a fine example of Interwar architecture and was erected in 1933 to house the Rural Bank of NSW for many years.

He said council purchased the building, including fixtures, fittings and equipment for $900,000.

"The acquisition of this prominent piece of real estate adjacent to Griffith City Library will provide a wonderful opportunity for council to plan development of a cultural precinct in Banna Avenue," Cr Dal Broi said.

"Following the purchase, council will begin to draft a master plan for the area to accommodate this vision. Stage implementation of the master plan will occur through council's 10 year financial plan."

Council's general manager Brett Stonestreet said expressions of interest would be sought during the development phase of the master plan.

"Our master plan will be developed by council in consultation with the community and we look forward to this step in the process as we engage our local residents," Mr Stonestreet said.

In recent years the building has housed the State Bank as well as The Clock Restaurant and Tango's Bar and Grill.

Settlement of the building was completed on Thursday, January 15.