Council infrastructure manager Mark Hughes said the options in dealing with the sludge were limited, mainly because of its composition.
Mr Hughes said it has to be dumped in a designated landfill, and while Bonny Glen (near Marton) can take some, the bulk would probably have to go to a landfill at Hampton Downs in Waikato.
He said the sludge would be dried out before being taken away. It cannot be composted or recycled because it contained too many heavy metals.
Planned changes to the plant mean the sludge would be removed on a regular basis and dehydrated before being taken off-site.
The $24 million cost would bring the system back within resource-consent guidelines.
Initially, lime slurry had been sprayed over the ponds as a first step in overcoming the stench and polymers were added to help take suspended solids to the bottom. Hydrogen peroxide had also been added at the Beach Rd pumping station to stop any sulphides getting into the system. The sulphides were responsible for the original odour coming from the ponds.