Mr Casey said full wreck removal was still possible, but it would not return the reef to its pre-Rena state.
There would be a greater health and safety risk to salvors involving extensive diving at depth.
Salvors could remain working on the reef for up to five years, Mr Casey said.
Councillors were given a snapshot of how much nature was reclaiming the stern section that broke off the wreck and slid down the side of the reef nearly 15 months ago.
Roger King, marine contractor for the ship owner's insurance company, said he was amazed at how much the reef was incorporating the Rena into its environment, rather than the other way around. The exclusion zone's impact resulted in salvors having to shoo schools of fish out of the way during surveys in order to see the containers that were becoming encrusted with marine life.
The update followed criticism from Mayor Stuart Crosby the council had been excluded from discussions about the Rena and was not getting enough information to have a clear understanding of the real issues.
No decision had been made on leaving Rena on the reef, but draft assessments had been distributed for stakeholder and regional council review. The Maritime New Zealand order for full wreck removal remains in place.