The Castle home could cross Vic-NSW border

It's not a compulsory acquisition, but a NSW council and whisky company could buy the Melbourne house featured in cult Australian film The Castle.

An attempt to heritage list the post-war weatherboard house at 3 Dagonet Street in Strathmore to save it from demolition to make way for townhouses failed last month.

However, unlike Darryl Kerrigan's fight in the 1997 comedy, a bid to save the property may not have to go as far as the High Court.

Federation Council and the Corowa Whisky and Chocolate company could join forces to have the house moved across the border, News Corp reports.

The plan would see the home reportedly used as a museum, accommodation and cafe.