The City of Asbestos in Quebec, Canada, announced on Wednesday (local time) that it will change its moniker because the negative connotation hinders its ability to develop economic relationships abroad, the city said in a news release.

The city initially grew from the development of an asbestos mine around a large deposit of the substance discovered there in 1897. For decades, the town thrived on asbestos mining and product manufacturing.

The City of Asbestos in Quebec, Canada, announced that it will change its moniker because the negative connotation hinders its ability to develop economic relationships abroad, the city said in a news release. (Pierre-Paul Drouin)

Asbestos is a naturally occurring, but highly toxic substance that has been banned in Canada since 2018.

When inhaled or ingested, asbestos fibers can become trapped in the body, and may eventually cause genetic damage to the body's cells. Exposure may also cause mesothelioma, a rare and aggressive form of cancer.

The city will begin a selection process the choose a new name which it says will be transparent and inclusive of citizens.

"As citizens are the ambassadors of a municipality and are the representatives of its vitality, it was obvious that the public would be involved in the process and the choice of the new name," Mayor of Asbestos Hugues Grimard said.

Asbestos is a naturally occurring, but highly toxic substance that has been banned in Canada since 2018. (AAP/Supplied)