The fuselage of an iconic World War Two Lancaster bomber believed to be "lucky" has been returned to the Australian War Memorial (AWM).

G for George is one of the memorial's most beloved and well-known exhibits and has been in storage for the past five years while the memorial underwent significant redevelopment.

Hundreds of people lined Anzac Parade in Canberra to see the aircraft's fuselage return to the memorial under police escort. The aircraft will now be reassembled to return to public display.