3:23 PM PT -- The artist, Jules Muck, tells the IndyStar she's reached a compromise with Bird ... agreeing to remove all the tattoos except for the "Indiana" one on his left forearm.
Larry Bird is adamant he's NOT a "tattooed guy" -- and he ain't happy with a new mural in Indiana that depicts him as a walking canvas.
The NBA legend's attorney has reached out to Jules Muck, the artist who created the Bird tribute on a Fountain Square building in Indianapolis ... an image that shows a young Bird with ink on his face, chest and arms.
In the mural, Bird looks like a SoundCloud rapper -- with tats showing everything from bunnies humping to the word "Indiana" on his forearm ... there's also a clover (Celtics) and a spider web.
The image is a play off of Bird's famous 1977 Sports Illustrated shoot, when he played for Indiana State.
But, Bird's attorney says the image is a problem because the REAL Larry doesn't have tattoos and Larry feels he "needs to protect" his brand.
"Larry’s position is he has elevated himself from where he began to where he is now through a lot of hard work. He has developed a brand that is marketable and he needs to protect that brand,” attorney Gary Sallee told IndyStar.
"The mural, as originally painted, was a departure from that brand."
The artist says she's conflicted about how she'll handle the issue -- she's still considering her options.