The church yesterday released details of a decision made last week at a diocesan council meeting.
The meeting followed a decision by the church synod to end 125 years of Anglican ownership after it voted to allow the sale of the buildings and business.
The move continues a trend for residential colleges to move from church control to that of the University of Otago.
The plan was vigorously opposed by some, including 280 Selwyn residents and former residents who signed a petition calling for church involvement to continue at the college.
The church yesterday said a diocesan council meeting last week spent considerable time reflecting on what had taken place at the synod meeting.
The council, which would direct any sale, agreed to a further process of consultation before acting.
It would also consider, alongside the consultation process, the appropriateness of submitting any final proposal to another synod meeting.
Diocesan registrar Andrew Metcalfe said after the consultation, depending on the result, the council might recommend something different from the decision to sell.
In that case, the matter would have to go back to the synod to "basically talk about it again".
In an email to members, the church said it had begun a process of organising a consultation panel, which would invite further submissions.
The panel would have an independent chairman to assist in developing terms of reference, selecting panel members and determining how the consultation would take place.
