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Queenstown Lakes District Council has announced it will look at options to address increasing traffic congestion on the one-lane bridge, which links Arthurs Point to the town centre.
Mayor Jim Boult said the time was right to explore future options for the crossing.
"The Edith Cavell Bridge has served its community well for 100 years, but it's no surprise that our local traffic is rapidly outgrowing a one-lane bridge.
We are only at the point of initiating thinking, but felt the time was right to let the community know that we are looking at what is needed to provide sufficient traffic flow.
"This could be anything from traffic lights to a second crossing. We have budget for the exploratory work but costs for delivering the final adopted solution would need to be agreed in a future ten year plan.''
The Edith Cavell Bridge is a well-known local landmark in Queenstown Lakes District and is named to recognise the heroic efforts and ultimate sacrifice of an English World War I nurse.
Councillors formally acknowledged the name 'Edith Cavell Bridge' at a council meeting on January 31.
Mr Boult said the name, originally coined by an ageing gold miner from County Antrim, Northern Ireland, needed to be formally recognised by the council.
"This brave nurse gave so much of herself, risking her own safety, to save so many other lives during World War I, that it was without question that this council needed to formally recognise the name on the 100th anniversary of the bridge.'