Auckland/Northland state highways manager Tommy Parker said the agency was working with the council to identify a solution, although he gave no time frame.
"Given that the fault appears to lie underground, and intersection improvements are proposed for the long-term, we need to make sure we don't double up and cause further unnecessary disruption to motorists or expense for the taxpayer," he said.
Mr Weston agreed that it would be "wasteful to spend significant funding on a short-term repair if a major rebuild is scheduled shortly after".
"At this point we are working with the NZTA to bring forward the intersection improvement works, and to undertake the signal improvements at that time," he said.
"We expect to confirm the way forward early in the new year."
Although NZTA was responsible for state highways, the council looked after the computer programs that ran the traffic lights phasing in the city.
The agency and the council faced a similar crisis of responsibility in November, when faults at the Kamo bypass lights caused traffic jams and angry motorists.
Mr Parker said he understood the problem was "frustrating for motorists during the holiday period, and we thank locals and holidaymakers for their patience".
"We're conscious that there are many visitors to the region who will be unfamiliar with the intersection, and we urge motorists to exercise care."