The installation of 65 CBD cameras was earmarked to start next month but the date has now been moved to April next year, with a go-live date of June.
Public pressure for increased CCTV grew after a stabbing in the city centre last year, which happened in view of a security camera that was not working.
Invercargill Mayor Nobby Clark acknowledged the delay would be disappointing for the community.
"It’s unfortunate that we cannot meet the initial timeframe and budget that was discussed, but we will continue to keep this project as a focus," he said.
"Everyone at council is aware of how important having CCTV across the city is to the community and we know it is necessary to assist in keeping our community safe," he said.
Invercargill City Council infrastructure group manager Erin Moogan said the extra time would "allow us to ensure it is done correctly".
Stage one of the project would include 65 cameras in the Invercargill CBD.
Installing CCTV in South City and Bluff would be considered in stage 2, and it was likely more budget would need to be allocated to complete this work, Ms Moogan said.
