Sport New Zealand has joined forces with Whanganui District Council to better assess the feasibility of putting a roof on the city's velodrome.
The two organisations will "effectively determine the scope, viability and cost of putting a roof on the Whanganui Velodrome," a council spokesperson said.
A peer review of plans and information about the development has been carried out by Sport New Zealand.
The review looked specifically at the feasibility study, the indicative business plan, the operating costs and provided some recommendations for next steps.
"In summary, the finding of the review was that further analysis and information would be required before Sport New Zealand could provide support," said council chief executive Kym Fell.
Mayor Hamish McDouall was coy when speaking on the likeliness of the project to become a reality.
"The council needs to understand the viability and usage of a covered velodrome before we do any further work," he said.
"Our community, region and central government must be satisfied that this is an affordable project and will be sustainable throughout the duration of its life."
He said council needed to be prudent around large capital expenditure but those behind the velodrome venture should be commended.
"The Regional Velodrome Development Trust should be recognised for their ongoing dedication and tireless efforts to secure funding, which has largely been without recognition and in a voluntary capacity.
"Their enthusiasm and dedication has driven the project to this point and has required the time and energy of not only the Trustees, but also their families."
Earlier this month the trust held an open day at the velodrome not long after an announcement they would get a half-a-million-dollar boost from the Whanganui Community Foundation.
The project is waiting on confirmation from central government for a grant of $6m expected early next year.
The trust says $3m of the $12m expected cost of the project has already been raised.