Transport Accident Investigation Commission (Taic) spokesman Ken Mathews said investigators were in negotiations with the New Zealand Navy underwater team and a commercial dive company to salvage the engine.
"If feasible, then we will definitely recover the engine [as part of our crash investigation]," he said.
Mr Saxton, a rescue and commercial pilot, died on November 1 when his registered helicopter ZK-HXR crashed into Lake Wanaka on a routine flight from Haast.
The Taic is the aviation authority responsible for investigating the cause of the accident.
Mr Saxton's body was recovered from 96m beneath Lake Wanaka inside the wrecked bulk of his helicopter on November 6.
A "seizure of helicopter wreckage" order has been issued by Taic, which prevents any items from the wrecked helicopter "such as the engine" from being removed from the lake.
The wrecked remains of the engine sit on an underwater shelf - 74m beneath Lake Wanaka.
Mr Mathews said the order ensured that any remaining helicopter items would remain in the statutory possession of Taic investigators and would prevent any "unnecessary intervention".
He declined to specify what would constitute "unneccesary intervention".
No person is to attempt to remove any item that is from ZK-HXR without the prior written authority of Taic.
Any flotsam or other item that could be from the helicopter should be handed into the Wanaka Police Station.
Mr Mathews said the bulk of the salvaged helicopter, a main rotor blade, and various wreckage items were now in a Christchurch workshop and in the possession of Taic investi-gators.
Aviation industry experts and representatives from the manufacturers of the Robinson R22 were helping Taic investigators Peter Williams and Ian McClelland with their in-quiries.
Investigation results would "normally take about seven months to complete", Mr Mathews said.
Police are still investigating whether assault charges will be laid in relation to an alleged group beating of a 27-year-old Wanaka man at the funeral of Mr Saxton.
Constable Bruce McLean said inquiries were continuing, but police were yet to positively identify any, or how many, possible assailants were involved in the alleged attack at Wanaka Airport during the wake at Mr Saxton's funeral.
