THE first coloured coin ever produced by the Royal Australian Mint for general circulation will commemorate the sacrifice of Australians at war.

As Remembrance Day approaches the Deputy Prime Minister and Treasurer Wayne Swan launched the special $2 coin with a striking red poppy at its centre in Brisbane yesterday.

He also released a non-coloured version of the coin and five million of them will hit banks and shops during the next few weeks.

Just 500,000 of the unique coloured coins will be pressed and they will be distributed by RSL clubs nationwide as part of their annual red poppy appeal on November 11. The RSL will ask for a $10 donation for each of the collectable coins and will begin distributing them next week.

Both coins will have a face value of two dollars in banks and shops.The Mint produced a special non-circulating red poppy $5 collectable coin to mark 11/11/11 last year.

Mr Swan said the new coins honoured the sacrifices made by so many Australians.

"I hope that every time Australians pull this unique coin out of their pocket, they're reminded of the brave men and women who have done so much for our country,'' he said.

"My granddad fought in Monash's 3rd Division in the Somme and Flanders in the First World War and my father served in the Second World War in the RAAF, where he was shelled, bombed and attacked by enemy infantry.

Like his father, he saw friends killed and this is something he never forgot.''

Veteran Ewan Cameron from Townsville said the attractive and collectable coins were a unique and exciting way to mark the sacrifices of the nation's fighting men and women. "Remembrance Day means even more these days as we have so many young Australians serving around the world,'' Mr Cameron said.

The coins were designed by Aaron Baggio and the coloured version features the words Two Dollars and Remembrance with two small poppies bordering a bright red poppy superimposed over the words Lest We Forget and Remembrance Day.

Royal Australian Mint chief executive officer Ross MacDiarmid said the new coins would not go unnoticed around the world.

"Only one other country, Canada, has released coloured coins into circulation and the fact that we have added micro-lettering into the design showcases our world class innovative capabilities,'' Mr MacDiarmid said.

A collectible coin product is also available for $12.95 from the Royal Australian Mint at www.ramint.gov.au.