Tasmanian Police confirmed it had not received a report from the council about the missing drawing.

City of Launceston General Manager Michael Stretton confirmed Waves V was missing from QVMAG's fine art store, but that it might be in another store or at a different QVMAG property.

"We've liaised with Tasmania Police on the missing work, but there has not been an investigation at this stage due to the QVMAG being unable to confirm with certainty that it is not on QVMAG premises," Mr Stretton said.

IN OTHER NEWS:

Council outlined its plan to undertake a collection audit at QVMAG at cost of $250,000 in its draft budget, which was released on Friday.

"This is one of the reasons we are eager to undertake a comprehensive audit of the QVMAG's extensive collection," Mr Stretton said.

"Collection audits require significant resourcing and time. Being mindful of these resource requirements, a structured plan, procurement process and framework will be implemented, including an initial stage of work which has been allocated $250,000 in the proposed 2019-20 annual budget."

Whiteley's drawing was for the museum's collection in 1976 for $800, but there is no further record of it.

The value of Waves V is unknown, but similar works have sold for up to $30,000.

Queen Victoria Museum and Art Galley is owned by City of Launceston.

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