The project, which is still in its planning stages - despite being first pledged during the 2010 federal election by the Labor Government, has since been delayed due to disagreement between stakeholders regarding the design and layout of the building.

According to community and recreation section manager Steve Bernasconi, talks on the building's planning have taken place between several interested parties including state MP Craig Baumann, Port Stephens Council, surf club representatives and executives from Worimi Local Aboriginal Land Council.

Mr Bernasconi said that the "size and scale of the building and its impact on visual and cultural matters have been the major points of debate."

"All of this consultation is designed to produce ... the building up of positive relationships between Aboriginal and non aboriginal stakeholders," he said.

However according to Mr Bernasconi the project is now closer to moving ahead, with an alteration to the buildings original design.

"All stakeholders have agreed that the site can hold a single level building," he said.

"The final footprint and design of that single level building is being discussed."