The Queenstown Lakes District Council announced last November it intended to sell the 9.5009ha Commonage Development block on Queenstown Hill, subject to receiving a "suitable offer".
In April the Otago Daily Times reported the land was expected to sell for more than $20million.
However, council property director Richard Pope said the sale had not been completed "on terms that it considers best for the community", despite more than 80 inquiries being received by JLL and Luxury Real Estate and five formal offers to purchase the land.
"We want to ensure that the community attains maximum sale proceeds," Mr Pope said.
The woodland off Vancouver Dr, is the last block of 40.47ha vested by the Government under the Queenstown Reserves Vesting and Empowering Act 1971. The council had previously resolved to sell it to help fund infrastructure.
The land was for sale by international tender and the ODT reported earlier this year it had piqued the interest of potential purchasers from Singapore, the United Kingdom and Australia.
A "small portion" of the site was undergoing a zoning revision through the district plan review which had also been appealed to the Environment Court.
Mr Pope said the council was also identifying ways to improve the site access and was evaluating options.
