Council chief executive Dr Sue Bidrose, responding to Otago Daily Times questions, yesterday said the council was in talks with QBE to recoup some of the missing money.
She would not be drawn on how much might be recovered, but hoped details of any agreement could be announced within weeks.
''We continue to have open and honest dialogue with the insurance company.
"As soon as we know where we have got with them we will be making it public.
''We want people to know what's happening,'' she said.
The Deloitte probe revealed 152 council vehicles had been sold, and proceeds of more than $1.5 million pocketed, since 2003.
There were suggestions the alleged fraud went back much further.
Council group chief financial officer Grant McKenzie has since confirmed the council's legal advice suggested it would be unable to recover cars from individuals who bought them ''in good faith''.
That was because former Citifleet team leader Brent Bachop - the man at the centre of the ongoing fraud investigation - had been entitled to sell the council's vehicles as part of his role.
It is not clear what might happen if the insurance company seeks to pursue buyers of vehicles, after any payment to the council.
Dr Bidrose would not be drawn on that yesterday.
