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The lease on the Yewlett Crescent camping ground was due to expire on August 31 this year, but in a statement yesterday the council announced that had been extended until after the district-wide camping strategy was completed.
Additionally, the council had frozen rent and ``tariff charges'' - fees charged by the camp for permanent and semi-permanent caravan and cabin permits - for all holders.
The site's managers would offer permit extensions giving surety of residence until the lease expires next August.
``A decision has yet to be made on the future of the campground, but it is unlikely that there will be options for permanent or semi-permanent accommodation at the site,'' the council statement said.
``By extending the lease until after the [camping] strategy is completed, disruption to camp residents and users will be minimised and allows them time to plan other accommodation arrangements before the lease expires.''
Council staff would meet permit holders at the camping ground early next month to explain the decision and ``possible future options''.
The camp has been operating on the existing site, overlooking Lake Wakatipu, since 1994.
Camp manager Tracey O'Rourke could not be reached for comment yesterday.