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Volley has terminated a controversial campaign after it breached advertising standards.

The campaign, featured in strategic locations across Melbourne, included a series of posters featuring the words 'Fuck Off'.

While the expletive was partially obscured, the Advertising Standards Board said it was in breach of advertising codes.

In a statement to the board, Volley confirmed the campaign was terminated and will not be reactivated in future.

“Even though the word “Fuck” is obscured by a hatched line, we concede that it may still be understood to be the word “Fuck”.

"In our defence, we would submit that the word “Fuck” has now entered common usage and its ability to cause offence has been greatly diminished over the years.

"We conceded that some sites where the poster was deployed may not have been appropriate in the circumstances."

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