The marketing manager of Port Stephens Tourism Tars Bylhouwer said while the department of defence still had no timeline for a decision there was an "immense amount of work to be done" to ensure a smooth transition if the application was accepted.

"We are talking to all the interested parties," Mr Bylhouwer said.

"So that when the times comes... it's an organised project."

Mr Bylhouwer said the hold up could be attributed to the unusual form of the Port's request.

The request asks for a ship which has had specific items taken by other applicants, leaving the frame of the ship for an artificial reef dive site.

When asked about the applications the department of defence was tight lipped.

"Defence is unable to comment on the number of responses received, the merits of individual responses or if it has received responses from particular organisations," the defence spokesperson said.

"Responses are still being evaluated by the Defence Disposals Agency and once the evaluation is complete, advice will be provided to Government on the next steps in the disposal process.

"Initial advice to government is expected to occur in the coming months."