Another of Melbourne's heritage pubs will be knocked down for apartments – although the 150-year-old building's facade has been saved after Melbourne City Council pushed for its retention.

The Great Western Hotel, which has stood at the corner of King and Little Bourke streets since 1864, will join scores of former pubs to be demolished for housing in Melbourne's inner city.

The pub on Thursday morning. It closed in March. Credit:Joe Armao, Fairfax Media.

The pub shut in March. Its leaseholder said beer sales had declined from 42 barrels a week in the early 2000s to around 15 barrels last year.

Despite being built during the gold rush, the pub has no heritage protection. Only the front of the building will be kept for the proposed $15 million apartment tower.