Councillors had a limited discussion yesterday about the hall of fame, but Dunedin Mayor Aaron Hawkins and council chief executive Sandy Graham signalled starting a new level of service of cultural facilities would require public consultation on the subject.
Councillors were to consider legal advice overnight and the subject could be revisited tomorrow.
The hall of fame has been at the Dunedin Railway Station since 1999 but is under threat of closure.
The council will need to decide if the city should keep the hall and if it wants to be part of an expressions-of-interest (EOI) process about where the hall should be located.
Councillors have been awaiting a report from a consultancy commissioned by Sport New Zealand, but it has not been completed.
A $50,000 lifeline from the council to keep the hall open expires this month.
Providing more funding for the hall until a decision is made about the final location is among the options to be considered by councillors.
Not responding to the EOI process is another.