It's time to reconsider raising and bringing home the wreckage of Australian submarine AE2 from her resting place in the Sea of Marmara off Turkey, the National Maritime Museum says.

The director of the Sydney-based museum, Kevin Sumption, says the relic of the Gallipoli campaign is surprisingly well preserved, despite the passage of almost a century.

In 2008 a panel of Australian and Turkish experts considered raising the vessel but concluded it wasn't practical.

But now the federal government has allocated $2.5 million towards the preservation of AE2.

"It is about time then to reconsider the practicality and the technology needed to bring the vessel up," Mr Sumption told AAP on Wednesday.

"I don't think many Australians appreciate that potentially one of the most historic relics in an incredible state of preservation is sitting 73 metres down."

When Australian troops landed on Gallipoli, AE2 managed to penetrate the Dardanelles.

It was an astonishing feat, given two submarines had been lost trying to pass through the narrow, strongly defended waterway.

Over the next four days AE2 sank a Turkish cruiser and made unsuccessful attacks on other Turkish ships.

Damaged by a Turkish gunboat, AE2's captain Lieutenant Commander Henry Stoker ordered her scuttled and all aboard were captured.

The wreckage of the 800 tonne vessel was found in 1998 at a depth of 72 metres.

It was in relatively good condition, being beyond the depth easily reached by sport divers so the wreck hadn't been picked over by souvenir hunters.

Mr Sumption said any proposal to raise AE2 would need to be considered in conjunction with Turkish authorities.

But he isn't setting aside a place at the museum for AE2 just yet, although the facility hopes to build a new pavilion to house a major exhibit about AE2, in time for the Gallipoli centenary in 2015.

"We are looking at featuring some new technologies that would take schoolchildren down to the site to remotely look at the submarine in situ, understand the history of its service and the men who served aboard it," Mr Sumption said.

AE2 and her sister boat AE1 were built in Britain and launched in 1913 for the new Australian navy.

AE1 and all her crew vanished without trace off New Britain in Papua New Guinea on September 14, 1914.