The project is expected to cost around $1.6 million.
The blowhole area has been on the move for years, with residents recalling a significant subsidence in the 1950s.
The slip plane has been exacerbated by coastal erosion at the foot of the hill.
There have been successive block movements around the blowhole over the past few years and a concrete beam installed in an attempt to stop the slipping is no longer effective.
Wairoa District Council chief executive Steven May said Geotech advice had been that the only way to fix the problem was to move the road out of the slip plane.
Council is hopeful the project will go out for tender in the next couple of months, with work scheduled to begin in October/November and expected to be finished by next autumn. — Wairoa Star