Ashburton Mayor Neil Brown says the future of the rail yard in the middle of town will be decided by the end of this year.
The Ashburton District Council has been keen for years to have the rail operation relocated to the business park north of town. It could cost up to $10 million.
Mr Brown said last week that he had met with people looking at rail as a transport option and wanting to relocate the yard.
"There is no council money involved," he said. "By the end of this year we will have some certainty. There is dialogue and it is being worked on. Something is happening."
His comments follow a meeting where councillor Diane Rawlinson asked about the benefits of moving it.
Council economic development manager Bevan Rickerby said it was because it was an eyesore, but it was also a long way from businesses at the park who would like to use it.
The current yard is in need of an upgrade.
In 2018, former CEO Brian Lester was involved in talks to discuss relocating the yard.
