Council staff have confirmed the gallery, which it owns, is one of several central city sites being considered as they search for a temporary home for the council's Octagon i-SITE Dunedin Visitor Centre.
The visitor centre, in the Municipal Chambers, is being moved to avoid planned construction work associated with the $45 million redevelopment of the Dunedin Town Hall.
Council customer services general manager Grant Strang said the decision to move the visitor centre had already been made, and would be undertaken in "four to six weeks".
The temporary move was expected to last six months, from September to March, although it could be extended if there were delays to the town hall project, he said.
Although a new home has not been selected, the Otago Daily Times understands the Dunedin Community Gallery is the favoured option.
The gallery, located in Princes St, near the Octagon, is owned by the council but leased for short periods to groups and individuals.
Members of the council's executive management team met yesterday to discuss the move, but, speaking afterwards, council strategy and development general manager Kate Styles would not be drawn on a preferred location.
She would only say the gallery was one of about "half a dozen" being considered, and any decision was several weeks away.
Other options included temporarily relocating the visitor centre to the council-owned Dunedin Public Art Gallery, or leasing a vacant shop on George or Princes Sts.
"It [the community gallery] is one of the options and there's no pecking order at the moment," she said.
However, if selected, alternative arrangements would need to be made for about 20 groups booked to use the community gallery over summer, she said.
News of the possible temporary closure was not welcomed by New Zealand Model Vehicle Club national secretary Eric Brockie, of Dunedin, who was running a display of 1500 models at the gallery yesterday.
His club rented the gallery annually because it provided an affordable space in a central location, and he believed there were few available, and affordable, replacements.
The impact would be felt by other groups booked to use the gallery over summer, he said.
"I think the community would be lost without it," he said.
"It would really hurt us bad if we couldn't get into here."
Mr Strang said the decision to shift the visitor centre was made for health and safety reasons, as construction workers involved would be working in the ceiling above staff and customers.
"What would happen if a hammer dropped?... We just can't afford to have staff and customers in an environment which is not safe or is going to degrade the service."
About 12 staff would be relocated as part of the move, which was being undertaken early to avoid disruption part-way through the Dunedin cruise ship tourist season, he said.
The town hall redevelopment was not scheduled to begin until January or February next year, Mrs Styles said.