This delay has stalled planning and costings for the project, while the details are ironed out.

Port Stephens Council's acting general manager Wayne Wallis said there were a number of critical factors which had created hurdles for the project along the way. One of the biggest has been the council's inability to secure a parcel of land next to Nelson Bay Road, which is needed to provide a 400-metre link before work can begin.

The land is owned by the Worimi people. Mr Wallis said discussions continued.

"Port Stephens Council has been working with the Worimi people for several years to come up with a solution for the development of this traffic corridor," he said.

"Those negotiations are ongoing."

"Port Stephens Council continues to be in close discussions with all parties involved in the development of this project."

Mr Wallis said the acquisition of the land was not the only hurdle, with environmental assessments, design, costing, funding and construction all contributing factors. He said he understood the need for residents of Fingal Bay and the southern end of Shoal Bay to have a second access out of the area in times of emergencies, and the need to reduce traffic congestion through Shoal Bay and Nelson Bay in busy holiday times.

"This is the preferred route because it would provide the safest intersection on to Nelson Bay Road. Alternate intersections are not viable in terms of safety and physical constraints," he said.

When asked what the estimated cost for the project would be Mr Wallis said that was not known at this stage.

"Due to the time taken to finalise negotiations and the changing construction and design parameters, the project has not been costed for some time and will need to be re-estimated when the council is certain that this project can proceed," Mr Wallis said.

"When council has an estimate for the total cost of the work project, it will then be able to identify suitable revenue sources."