Councillors were briefed on the proposal by Dunedin historian Rodney Hamel at yesterday's public forum, after Mr Hamel's opinion piece, calling for the statue to be moved, appeared in the Otago Daily Times yesterday.
Mr Hamel told councillors he would like to see the statue relocated from near Queens Gardens to the museum reserve "to give this man's reputation the prominence that it actually deserves".
Dr Stuart, the minister at Knox Church until his death in 1894, was considered one of the city's most prominent and loved citizens, Mr Hamel wrote yesterday.
After he died, about 6000 people followed his hearse.
A further 20,000 gathered to farewell him.
Mr Hamel's proposal received an enthusiastic response at yesterday's forum, although Cr Kate Wilson also suggested the statue could be moved to the planned University Plaza, beside the Forsyth Barr Stadium.
Cr John Bezett supported the "strong case" presented by Mr Hamel, but wondered whether the idea should be the subject of public consultation.
Cr Bill Acklin said the idea should be referred to the council's community development committee.
It should then form part of next year's 2011-12 annual plan deliberations, Cr Acklin said.
Mr Hamel's pitch was made to a depleted audience, with just seven of the 15-strong council attending yesterday's public forum.
Mayor Peter Chin, deputy mayor Syd Brown and councillors Michael Guest, Teresa Stevenson, Fliss Butcher, Richard Walls, Colin Weatherall and Andrew Noone were all absent for a variety of reasons, including council business.
Cr Acklin, chairing the forum, said he was able to start the meeting despite the low turnout, but was unable to confirm the minutes of last month's meeting.
