It barely survived being tossed out of a sailors' bar but finally the original boxing kangaroo flag, part of Australia II's historic victory at the 1983 America's Cup, has returned to Fremantle.

The flag was hastily crafted by sailmakers ahead of Australia's first and only America's Cup win. It has sat in a Newport, Rhode Island, bar since 1983.

Australia II winch grinder and project manager John Longley said designs were made for a battle flag to be flown ahead of the race but things didn't go to plan.

"We then asked one of our sailmakers to make some flags using the image, he just made a white flag with the black outline on it," Mr Longley said.

"So the end result was if you hauled it up it looked like surrender flags."

The owner of a well-frequented bar, O'Brien's Pub, in Newport prompted the flag's making after asking sailmakers if they had a syndicate flag, as it was collecting them.

"They went and got the drawing, and the offcuts of the green and gold spinnaker material, and they made up a flag and they came up with the idea of the red gloves and the red eye," Mr Longley said.

"So they made this flag and gave it to O'Brien's who stuck it up in the rafter of this bar.

"John Bertrand saw it and said: `That looks great mate, make one of those for the boat'. So, of course, we started using it."

It was flown during the race and the Australian Olympic Committee bought the rights to the flag which has become a part of Australia's sporting fabric.

During a visit to Rhode Island, Mr Longley paid a visit to O'Brien's.

"There, up in the rafters, was the original boxing kangaroo flag," Mr Longley said. "Interestingly, O'Brien's had cleaned all that memorabilia out a few years ago and the only one they kept was that one."

After explaining the significance of the flag, the owner, Tom Regan, agreed to hand the original over in exchange for a flag signed by the crew.

"I slowly told him the story of what a significant image it now is in Australia," Mr Longley said. "I said: `Mate this is very valuable, you know you've got to look after it, you know really it should go back and be in a museum in Australia, it's really a sporting icon for Australia'.

"After finally the penny dropped, he said: `Oh Jesus, we can't leave it there'."

Australia II trimmer Skip Lissiman accepted the flag from Mr Regan last month, at 5.35pm, on the 26th anniversary of the crew's win, the same time the crew crossed the finish line to claim victory.

Mr Lissiman on Monday handed the flag over to the WA Maritime Museum at Fremantle where the Australia II is housed. It will undergo conservation before being put on display.

"It's very fragile, it's now getting very, very tired," Mr Longley said.

It's place at the museum would ensure the story of the flag also remained intact, Mr Longley said.

"Without that flag the story gets lost," he said. "I'm almost as equally proud of being a part of the boxing kangaroo (as being a crewmember of Australia II).

"When I watch any sporting competition when Australia is involved, whether it be rugby, cricket or golf or tennis or whatever, even the Olympics and so forth, they usually cut to the crowds and there's usually a boxing kangaroo flag waving in the crowd. And I get a big kick out of that."

Mr Longley said that while it was never designed to be syndicated or marketed, it had been embraced by the Australian people.

Andrea Hayward
AAP