Sealing Haven St, in Moeraki, last year was probably a mistake, the Waitaki District Council's assets group manager, Neil Jorgensen, says.
He said yesterday the road had been sealed "too early''.
The seal would be ripped up in "a few weeks'' and Haven St maintained as a gravel road.
It was unlikely the road would be resealed, he said, "unless the rate of movement dramatically changes''.
"Probably in hindsight we shouldn't have sealed the road until we had monitored its movement for maybe two years, just to see how it's going,'' Mr Jorgensen said.
The Haven St rebuild allowed the road to reopen last year after being closed to through traffic in August 2013 when heavy rain collapsed a 400m section along the main route into the coastal village.
For five months last year a volunteer effort rebuilt the road.
Slumping was first noted in September last year, but the final seal was laid in November.
By January this year, the road had slumped up to 15cm in places as it settled, tearing the seal on top.
Mr Jorgensen said "the good news'' was the slumping was expected, and the concrete piles installed by the community-led rebuild team remained true.
The road had only dropped and had not moved laterally as it had previously.
"Realistically, the road is going to keep slumping down for some time,'' Mr Jorgensen said yesterday.
He said it would be monitored for "a couple of years''.
Waihemo Community Board member Jane Carlyon, of Moeraki, who is a part of the Haven St rebuild team, confirmed yesterday the community group had called for a meeting with the council seeking assurances the road would still be maintained by the council.
The section of road had become "really bad'' before the council re-gravelled it earlier this week, Mrs Carlyon said, but the road was still in "very much a settling period''.
"The main thing is we're still driving on it - it's still open,'' Mrs Carlyon said.
