Mysterious street artist Banksy appears to have unveiled his latest creation, targeting the issue of government surveillance.

The artwork shows three 1950s-style agents, wearing brown trench coats and trilby hats, using devices to tap into conversations at a telephone box.

It appeared overnight on a street in Cheltenham, Gloucestershire, just a few miles from GCHQ, where the UK's surveillance network is based.

Residents say they saw a group of men packing away a large white tarpaulin at around 7.30am yesterday, before driving off in a maintenance van.

The celebrated Bristol street artist has yet to officially confirm the piece on his website but fans say it has the "narrative, style and execution" of his work.

Karen Smith, 48, said the figures appeared on the side of the house where she lives on Sunday morning.

"It's pretty good. It livens the street up a bit," the mother-of-five told the Gloucestershire Echo. "There have been a lot of people about today looking at it.

"My daughter, Sophie thinks it's Banksy, but I've been speaking to different people outside and some agree, some don't."

Graffiti website streetartnews said Banksy had showed up with a maintenance van and covered all the sides with tarpaulin before creating the piece "at the break of dawn".

"Quite a strong statement against the recent privacy issues we experienced this past year with the NSA and such," the website said.

"Banksy didn't pick Cheltenham randomly as the city is home of the GCHQ (Government Communications Headquarters).

"While not officially confirmed by his website, this piece has all the Banksy characteristics in narrative, style and execution."