A culinary gem is about to join Wellington's already healthy collection of fine eateries.

NZME reports TV chef Jamie Oliver has hand-picked a historic building, once ear-marked for demolition as the location of his new Italian restaurant.

The 107-year-old Public Trust building on Wellington's Lambton Quay is the only surviving building made of genuine New Zealand granite.

Building owner Maurice Clark said the restaurant would create a "new hub" of activity in the area.

A public campaign saved it from demolition in 1975.

Oliver has previously rejected Sky City in Auckland as a location because he didn't want to be associated with gambling.