People will still be able to access the toilet and shower facilities.
The former Waipa Village site, on the opposite side of the road, has been made available by Red Stag for managed overflow parking for events scheduled during this time.
Council sports and recreation manager, Rob Pitketheley, said the upgraded carpark would meet the needs of all forest users.
"Rotorua is known for its world class mountain bike tracks and outdoor activities. They attract thousands of locals and domestic and international visitors each year. Ensuring our open spaces provide the appropriate level of service is a top priority for council.
"The current gravel carpark is functional but dust becomes a significant issue at times and ongoing maintenance is required to keep the gravel surface up to standard. A sealed carpark will require less maintenance and will meet the high standard that our world class trails deserve," he said.
Landscaping is planned for around the carpark.