The Queenstown Lakes District Council wanted to have construction of the $2.25 million roundabout completed by Christmas, but controversy has dogged the project since approval by the Wanaka Community Board last August.
The New Zealand Transport Agency has the final say on when construction will begin on the roundabout, which will be located where State Highway 84 - the main entrance route into Wanaka - ends.
The NZTA is providing the majority of funding for the QLDC-designed traffic project, but agreement is needed from several neighbouring landowners, who say access to their properties will be affected.
QLDC project manager Rob Darby this week told Radio Wanaka the work was unlikely to done until spring.
"I'd be surprised if construction starts before winter. It will probably be spring," he said.
Plans were yet to be approved by the NZTA, Mr Darby said.
"Technically, the road is still state highway ... essentially, it's their road, but it also forms part of the local network within Wanaka,"
NZTA Central Otago road area manager John Jarvis said the agency had not received the final design plans and "issues still need be resolved before we can sign anything off".
