Mephisto, a unique weapon of war and the only surviving German A7V tank from World War I, has gone on display at the Australian War Memorial in Canberra as part of centenary commemorations.

The imposing Mephisto tank has gone on temporary display at the Australian War Memorial in Canberra, but will return to Brisbane in mid-2017. ( ABC News: Gordon Taylor )

Its looming steel box structure mounted on massive metal tracks must have struck fear into the hearts of Allied soldiers, including Australians, as it lurched across the battlefields at St Quentin and Villers-Bretonneux on the Western Front in 1918.

"You can only imagine what it was like for Australian, and Allied Forces, to see this tank coming to them," Australian War Memorial (AWM) director Dr Brendan Nelson said.

Curator of military technology at the AWM Garth O'Connell said the A7V Sturmpanzerwagen must have been very imposing, particularly to troops who had never seen, let alone fought a tank before.

"On the day that this vehicle had its last battle on April 24th, 1918 it was a foggy morning ... it was 9 degrees Celsius and the fog didn't lift until midday, and 13 of these steel beasts came out at the British Army," he said.

Panzerkampfwagen 506, known as Mephisto, was part of the initial German tank detachment which participated in the first German tank attack at St Quentin in France.

In its second and final battle at Villers-Bretonneux, the Mephisto tank was disabled and abandoned on the battlefield.

Technical drawing showing the inside of a German A7V tank from WWI. ( Supplied: Australian War Memorial Canberra )

In what Dr Nelson describes as a cheeky and courageous plan, Queenslanders and Tasmanians from the 26th Battalion, AIF recovered the tank under the cover of darkness.

It was then transported from Europe to Brisbane where it became a permanent exhibit at the Queensland Museum.

Now the rare tank has been moved temporarily to Canberra to mark the 100th anniversary of significant WWI battles.

Germany's A7V Sturmpanzerwagen was the first tank developed by the German Army, in response to the earliest tanks built by the British.

Only 20 were ever built for use in war, and Panzerkampfwagen 506, Mephisto, is the only surviving unit anywhere in the world.