Options for the two-storey building are being discussed with the Otago-Southland office of the New Zealand Historic Places Trust.
The general manager of the Dunedin diocese, Stuart Young, said yesterday the review was being carried out by the Oamaru parish, which had had discussions with the trust.
The presbytery was a large building, did not meet modern needs, required extensive upgrading and was expensive to run and maintain.
At present, there was one priest in Oamaru - Fr Wayne Healey - and, at its maximum, the town would have only two.
"The parish is consulting the trust about options, but whatever happens, we have to have a presbytery," he said.
The first portion of the building was designed by architect Frances W. Petrie, who was responsible for a large number of early Catholic churches in the province, including the Basilica in Oamaru.
The presbytery was built about the same time as the neighbouring basilica, which was constructed between 1893 and 1918.
About 20 to 30 years later, a second storey was added to the presbytery.
The presbytery has a Historic Places Trust category 2 rating, the neighbouring basilica a category 1.
Built of Oamaru stone, now painted, it is part of the early Catholic Church community established in Reed St which incudes the basilica, presbytery, rosary convent and St Thomas Girls School (now Rendell on Reed rest-home) and St Josephs School.
The chairwoman of the trust's North Otago branch, Carol Berry, said the branch committee was made aware of proposals for the presbytery this week.
Trust staff in Dunedin were discussing the building's future with the diocese and parish.
Trust Otago and Southland area manager Owen Graham said the parish was being informed "what the heritage values are and how those values can be taken into account when they look at what can be done with the site".
"We are helping them to understand it is a heritage building and is significant to the community.
"It is a case of what they want to do, whether they can retain and reuse it or whether or not that is a practical solution for them," Mr Graham said.
Trust staff visited the presbytery on Monday and discussed with the parish its significance and that of surrounding buildings.
Apart from the trust's category 2 listing, the presbytery is also listed in the Waitaki District Council's plan as a B heritage item.
Council planning manager Jack Chandra said the building, which was more than 100 years old, was listed by the trust and council, so any demolition or alterations would require a resource consent.
The council would have to decide whether the application was notified for public submissions or non-notified, based on information provided by the applicant, including written approval from affected parties.
In the case of the presbytery, it might be fair to everyone to notify the application, to give the public a chance to comment.
