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‘Old Flo’, as it is known locally, was unveiled on Wednesday at Canary Wharf’s Cabot Square, its new East End location.

Moore sold the sculpture to London County Council in 1962 on the condition that it was publically displayed in east London. Following the demolition of its original location in a Stepney housing estate in the 1990s it been on loan to Yorkshire Sculpture Park.

In 2012 it was announced that Tower Hamlets would auction the work, valued at around £18m, at Christie’s to raise funds for the authority. The decision was reversed when a new mayor, John Biggs, was elected in 2015, and Tower Hamlets won a two-year ownership battle against Bromley council.

“When the previous mayor tried to sell off Old Flo, local people were enraged,” said Biggs. “That’s why, as soon as I was elected, I cancelled the sale and took the decision to bring her home instead.”

It is now located among more than 65 stand-alone sculptures in Canary Wharf’s public art collection where it will remain there for five years.

“Having this artistic treasure return to Tower Hamlets is a cultural boost for the borough as it prepares to make a bid to become the London Borough of Culture,” said Sally Williams, public art consultant for Canary Wharf Group. “Canary Wharf has always invested in public art and we’re proud to be playing a small part in helping to bring Draped Seated Woman back to the East End.”