Taylor Square will get a new rainbow pedestrian crossing under plans proposed by the City of Sydney council, five years after the original was deemed a safety risk and controversially ripped up.

The first rainbow crossing was painted across Oxford Street in 2013 to mark 35 years of the Sydney Gay and Lesbian Mardi Gras. It lasted one month before it was destroyed amid community outcry.

Lord mayor Clover Moore said on Thursday that the crossing would be reinstated nearby at the corner of Bourke and Campbell streets this year in "a victory" for the LGBTIQ community.

The safer new location is at the southern end of Taylor Square in Surry Hills.