"Mum'' arrived at Taieri Mouth in 1994 and was the first New Zealand sea lion to return to the mainland to breed for 150 years.
The New Zealand Sea Lion Trust first proposed a statue of Mum and her pup to the council at a public forum in May, to celebrate the 20th anniversary of her arrival.
On Monday, committee members voted to support the statue, and the matter will go to a full council meeting on September 22.
Councillor David Benson› Pope said at the meeting he accepted the trust's suggestion that the council look upon the statue as a gift.
"I don't think we should look a gift sea lion and pup in the mouth.''
Designed by sculptor Bryn Jones, the statue would be life-size and built of polyurethane and fibre glass, and would be located at the eastern end of the St Clair Esplanade, near the St Clair Surf School.
The trust had received a Stout Trust grant of $11,000 to build it.
Trust chairman Steve Broni said he was "delighted'' by the support the statue had received.
"We believe that not only is she an icon, but also a tourist attraction for the area,'' he said.
There was a significant sea lion population on Otago Peninsula with an estimated 11 breeding females, largely thanks to "Mum''.
"It's a memorial to this individual who brought the population back to the mainland,'' Mr Broni said.
"There were animals here before [humans] came, and they've chosen to come back. It says a lot for us.''
An information panel nearby would be situated near the statue, to help educate people about "big and beautiful, bold and boisterous'' sea lions.
Mr Broni said Otago Peninsula was relatively trouble›free compared with the Catlins and Stewart Island, where sea lions were sometimes attacked.
However, there were still problems with international tourists and students new to Dunedin accidentally provoking them or being unsure of how to approach them.
The statue would be "awareness raising''.
Esplanade Restaurant owner Katrina Toovey said she had not heard of the plans for the statue, but her business supported public art.
"We're all for art in our community. It's a bit of fun, and it's a talking point.''
- by Elena McPhee
