Melbourne's much-loved Skipping Girl Vinegar neon sign may soon be overshadowed and partially obscured by a tall apartment building, if a property developer gets the go-ahead from the local council.

While the historic sign once dominated the Abbotsford skyline, it sits in the middle of a rapidly developing suburb. Nicknamed Little Audrey by locals, the sign was first installed above a vinegar factory in 1936. A new version of Audrey was erected in 1970 near the original site, but switched off in 2001. She was resurrected by the National Trust and AGL in 2009.

The Skipping Girl Vinegar sign in Richmond.

"The Skipping Girl sign has been crowded in on by high-rise development in contradiction to City of Yarra's own landmark structure policy," National Trust conservation manager Paul Roser said, "and this building is going to have the greatest impact of the lot because it is the closest."

Developer Salta Properties defended its plans, saying its proposal for 647 Victoria Street provided more public access to the river and better views of Audrey than the old fire brigade training college and factories which used to be in the area.