An image of the new design for Federation Square's Apple store.

Problems remain with the updated design for an Apple "global flagship" store at Federation Square, Melbourne City Council says, after new plans were released that will still see one of the civic space's original buildings demolished to make way for the tech giant.

On Thursday, the council released its review of plans produced by Apple with the Andrews government.

In December, the government revealed its controversial decision to knock down Federation Square's Yarra building to make way for the Apple store.

The Aboriginal cultural centre inside Federation Square's existing Yarra building will be shifted to another location so that Apple can take up a prime riverside position next to Princes Bridge.