The fountain, given by Oamaru timber merchant John Craig in 1912, had extensive work carried out on it in 1990 after parts wore out and vandalism damaged it over the years.
However, the fountain leaked, was turned off during the 1990s, and has not flowed since.
Now, the council's committee of the whole at its meeting on Tuesday will consider a project to take the fountain apart, investigate options to strengthen, restore and reassemble it and involve the community in fundraising to pay for the work.
Dismantling the fountain has been estimated to cost $20,000, with restoration and reassembly to working order $60,000 to $100,000.
Recreation manager Erik van der Spek said the fountain, listed by the New Zealand Historic Places Trust as category 2, had deteriorated since the 1990s and was thought to be structurally unsound.
A conservation report in 2001 recommended dismantling the structure, repairing broken pieces, repairing and restoring pipes and the water supply, reassembling the structure and restoring the pool at its base to its original design.
An updated report this year also indicated the fountain was at risk of collapse in an earthquake and could be a risk to the public.
However, it was impossible to accurately determine the best solution to strengthen and reinstate the fountain until it was in pieces, Mr van der Spek said.
Other options, such as strengthening the fountain without dismantling it, were not feasible and could damage the structure.
One was core drilling all or part of the structure on site, but that could cause substantial damage and would not reinstate the water flow.
The council committee will consider the options, then make a recommendation to the council.
