The Prime Minister has hit out at a gender-inclusive toilet sign on display in his department, describing it as "political correctness", "not necessary" and "over the top".

Key points: Scott Morrison vows to "sort out" a gender-inclusive toilet sign posted in his department

Scott Morrison vows to "sort out" a gender-inclusive toilet sign posted in his department The sign encourages people to use the toilet that "best fits" their gender identity

The sign encourages people to use the toilet that "best fits" their gender identity The Prime Minister dubbed the sign "over the top" and "not necessary"

Scott Morrison made the comments after Nine political editor Chris Uhlmann tweeted a photograph of the sign outside the women's toilets at the Department of Prime Minister and Cabinet (PM&C) in Canberra.

The sign encourages staff to "use the bathroom that best fits your gender identity".

"Honestly this is why we call it the Canberra bubble, it's ridiculous ... It will be sorted out," the Prime Minister told radio station 2GB.

"I don't think this is necessary, I think people can work out which room to use … it's political correctness, over the top."

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Uhlmann's photo was taken inside the headquarters of the PM&C, which is located less than a kilometre away from Mr Morrison's office at Parliament House in Canberra, and posted on Twitter just before 3:00pm.

It look less than two hours for the Prime Minister, who was in regional NSW attending the funeral of former deputy prime minister Tim Fischer, to intervene.

Treasury secretary Phil Gaetjens, Mr Morrison's former chief of staff, starts as the new boss of PM&C on Monday.

The ABC has been told Mr Morrison will leave it for him to decide what happens with the signs.

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Sources said Mr Morrison's comments were personal, rather than a demand for his department to follow.

Earlier this week, the Prime Minister told Canberra bureaucrats in a speech to the Institute of Public Administration that it was "important we value diversity" in the public service.

"This is right in and of itself," he said.

"It is in keeping with the more diverse, pluralistic society Australia has become over many decades. And it chimes with our national ethos of 'live and let live'."

But Mr Morrison said diversity also meant tolerating people with the different opinions.

"I believe a commitment to diversity should encompass diversity of viewpoints within the [Australian Public Service]," he said.

"There is compelling evidence that this helps teams find answers to complex problems by bringing together people who approach questions from different points of view."

PM&C declined to comment when the ABC contacted it for comment.