The new earthquake strength assessment for the building comes as property services director Barry MacKay said ''far fewer'' buildings at the university had been found to be earthquake-prone than anticipated.
The latest tests on the arts building put it at 45% of new building standard (NBS) for earthquake strength, meaning it was not earthquake-prone, which is below 34% of NBS, Mr MacKay said.
The latest assessment is the third earthquake strength rating for the building after an initial assessment of 50% of NBS was downgraded to 29% of NBS.
Following the second test, the university was considering either demolishing or carrying out major repairs to the building.
The latest result for the building constructed in 1969 comes after boreholes were dug in the vicinity of the building to gain more certainty about the underlying geology, Mr MacKay said.
''The results of the borehole tests enabled the building's seismic performance to be confirmed at 45% NBS and, therefore, the building is not earthquake-prone. A decision is yet to be made on the long-term future of the building,'' he said.
The university had completed tranche five of its earthquake assessment programme and two small, former residential, properties were found to be earthquake-prone. Strengthening work on those properties was planned over the next two years.
''It is worthwhile noting that far fewer buildings have so far been found to be earthquake-prone than originally anticipated.''
Projects under way with a seismic strengthening component included work on Aquinas College, Toroa College, Property Services, St David 2, Marine Science, Science 1 and University of Otago's Wellington campus. A programme of chimney strengthening or removal was also under way across the Dunedin campus, Mr MacKay said.
Tranche four of its earthquake assessment programme was yet to be completed and tranches six and seven were yet to get under way. Tranche seven was scheduled to be completed before mid-2015.
The university announced in March last year it had committed $50 million for earthquake assessments and strengthening work between 2012 and 2019.