The ship, which once belonged to convicted fraud Michael Swann, has been berthed in the Otago Harbour Steamer Basin since November 2006.
It is understood to have been bought by the Lau Provincial Council and will be used to carry passengers and cargo around the eastern archipelago of Fiji.
About 30 of the Lau group's 100 islands are inhabited, with a combined population of more than 10,000.
Lau Trader had been expected to leave last Friday, but Captain Mafi Manuapai said the departure was delayed while a few things were "settled".
One of those was the certification of new radios installed on board.
The ship also had to be fuelled and provisioned.
Capt Manuapai, who is usually employed as a pilot in Suva and elsewhere around Fiji, arrived just over a week ago for the delivery voyage.
He said the crew of 11 planned to sail straight to Suva over the next 10 days.
The 50m ship was built in the United States in 1963 as a research vessel.
In 2006, Swann had it fitted out, in Dunedin, as an "ocean-going motor yacht".
Swann was sentenced in March this year to nine years and six months' jail, with a minimum non-parole period of four years and six months, for defrauding the Otago District Health Board of $16.9 million.
The ship was one of Swann's assets disposed of under the Proceeds of Crime Act.
The Crown Law office did not return calls yesterday but has previously declined to discuss the sale of Swann's assets, which also include property and motor vehicles.
Capt Manuapai said he had been to Dunedin before, nearly 20 years ago, on board the ship that brought the first load of lpg to Dunedin from New Plymouth.
He said Lau Trader was well built and in good condition, although it would need to be modified to carry cargo.
Caledonian Marine and Engineering has been providing services to the ship.
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