The Category 1 heritage building has been sitting empty since it was closed in February 2023, due to earthquake risk, after more than 90 years in business.
Conservation Minister Tama Potaka has announced the new process would identify operators capable of restoring the building while respecting the area's unique conservation values.
Ruapehu Mayor Weston Kirton said it was a significant step forward for saving the heritage building and bringing more tourists to the district.
It is situated near the Tongariro Crossing Alpine Walk which brings in about 100,000 visitors each year for the spectacular 19km volcanic hike.
"We've got two parts to it, one is that we've got the tender process for the Chateau," Kirton said.
"The other is to see what the government is saying about the concessions, meaning that anyone that is going to bid for the Chateau needs to have certainty that they've got it for a reasonable period - some were suggesting 100 years."
The Chateau was built in 1929 within the boundaries of the Tongariro National Park to encourage tourism within the park.
Potaka said it has long been an iconic destination for visitors and an important part of the region's identity.
"The Request for Proposals (RFP), opening on 19 March 2026, invites interested parties to put forward plans that recognise both the heritage significance of the Chateau and the cultural importance of Tongariro National Park," he said.
"The Chateau is a landmark many New Zealanders have visited for holidays to school trips and international visitors experiencing Tongariro for the first time."
"We are looking for proposals that balance commercial viability with conservation values, respect for tangata whenua aspirations, and the unique character of Tongariro National Park."
The RFP process would help identify operators capable of restoring the building, while ensuring it remained consistent with the values of one of New Zealand's most important national parks.
National Party MP for Whanganui Carl Bates welcomed the announcement, calling it "great news".
"The Chateau is a landmark many New Zealanders have visited for holidays to school trips and international visitors experiencing Tongariro for the first time. Restoring the building will help ensure the area continues to attract visitors while supporting local businesses and tourism in the wider region."
Kirton said it showed the government was serious about restoring the building and bringing certainty around the lease of the land.
"We know now that the government is serious about looking for potential bidders - those who have balance sheets to revitalise the Chateau."
He was aware of companies that could bring the building back to its former glory.
"There are people around. We'll be meeting one of them this weekend," he said.
"I think it's a long way towards saving it, but there's a lot of work to be done on behalf of the Department of Conservation and the National Park Acts of Parliament need to be adjusted.
"The government could well work through the existing legislation to allow this to proceed. All I can do is relay to the government that it's important for our district and the country to save the chateau because of its heritage status."
Tenders are open from March 19 to April 21 this year and Potaka said a panel would assess all proposals it received.
