The news came after a demand from Dunedin South MP Clare Curran to the Ministry of Social Development for answers on the centre's future.
Winz southern social development regional commissioner John Allen made the announcement late yesterday afternoon.
‘‘I know this decision will come as a relief to the South Dunedin community after wide speculation the site would permanently close,'' Mr Allen said in a statement.
‘‘The ministry has a responsibility to ensure its resources are invested in the right areas. This is taxpayer money and, as such, this was the responsible thing to do.
‘‘We thank the South Dunedin community for their patience while this centre has been closed.''The building would reopen ‘‘as soon as practicable'' next year, Mr Allen said.
The building and its services had been closed since June 3 when it was severely damaged by flooding. Repairs to the building were finished by July 10, but it did not reopen.
Ms Curran said the decision was ‘‘very sensible'' but was unsure why it had taken so long.‘‘It is a huge relief,'' she said.
‘‘It's an essential service [but] it's a pity it took so much effort.''Communication with the South Dunedin community could have been better, Ms Curran said.
Long-standing advocate for South Dunedin Jane Orbell said it would have been a big mistake to close the building.
‘‘I think [the news is] a really, really good thing.''The community needed the service and residents would be better off now that it was going to reopen.
Dunedin Mayor Dave Cull said the decision was ‘‘reassuring'' for the people of South Dunedin.
‘‘It's always a concern ... that government offices might close in the city [so] it's good news.''
A specific date for the reopening was not yet known.