After more than 35 years in Kingston in SA's southeast, 17m-high Larry is structurally unsound with a partially-detached leg that swings in the wind.
Frances Curkpatrick, who runs the Humbugz Honey restaurant that owns the popular steel and fibreglass structure, launched a crowdfunding campaign in September after discovering the extent of the damage.
Despite widespread support for Larry - including from state and local governments - Ms Curkpatrick has only raised about $10,000 for repairs.
But she believes the lobster's icon status will save him in the end.
"I think the community recognises that he's symbolic for Kingston all over the world. People know Larry," Ms Curkpatrick told AAP on Thursday.
An engineer's report has found Larry needs to be substantially rebuilt including a new outer skin, structural repairs and new concrete foot columns.
The Kingston District Council said it was willing to help pay for Larry's repairs but wants him moved to the nearby foreshore.
"If the council's going to invest money into Larry, it's got to be a benefit for the whole community," chief executive Andrew MacDonald said.
"Moving Larry onto the foreshore would encourage the more than 800,000 cars passing each year to pay a visit to Larry in our township as opposed to passing him on the highway."
But Ms Curkpatrick said she wanted Larry to stay put.
"It's purpose built. The building is supposed to represent the cray pot," she said.
