In a statement released late this morning, the Ministry for Culture and Heritage said the coastline near the site sustained significant damage in recent weather events and is no longer suitable for the memorial.
The memorial would mark the country's largest peace time loss of life, when an Air New Zealand scenic flight over Antarctica crashed into the side of Mount Erebus, killing all 257 people onboard in 1979.
Spokesperson Laulu Mac Leauanae said a new home for the memorial needs to be found.
"This morning I met with families who lost their loved ones in the Erebus disaster, and members of the Operation Overdue recovery team, to inform them of my decision to seek a new site for the National Erebus Memorial.
"This has been a difficult decision to make because I know how upsetting it is for families. They remain at the absolute heart of this kaupapa."
Leauanae said the Ministry for Culture and Heritage commissioned updated geotechnical engineering advice, after the nearby coastline was damaged in the Auckland Anniversary weekend flooding at the end of January and Cyclone Gabrielle in February.
"However, the updated geotechnical advice shows that building the memorial at the Taurarua / Dove-Myer Robinson Park is no longer suitable or safe for the long term.
"Based on careful consideration of the advice, and after discussions with Ngāti Whātua Ōrākei Trust, Auckland Council and our other project partners, I have decided a new, enduring site for the memorial needs to be found."
The memorial, planned for Dove Myer-Robinson park in Parnell, will commemorate the 237 passengers and 20 crew who died on the flight.
The site was chosen in 2018 and construction was due to begin in 2021 but the memorial had several setbacks. It was opposed by some community and Māori groups who, among other reasons, feared for the health of a sacred pōhutukawa.
Leauanae said said the latest setback is difficult for Erebus whanau.
"It is upsetting that we were not able to share better news with them today. I know the families have waited for years to see a National Erebus Memorial realised."
Leauanae said the ministry will continue to work closely with Erebus families, Ngāti Whātua Ōrākei Trust, Auckland Council and other partners to secure a new, permanent home for the National Erebus Memorial.
"I am speaking directly to the Erebus families when I say that despite this setback, me and my team at Manatū Taonga are absolutely and resolutely committed to securing a home for the National Erebus Memorial that endures for present and future generations of New Zealanders."
In November, the ministry said it remained absolutely committed to getting it built at the Parnell Rose Garden, despite opposition from some locals.
Auckland Mayor Wayne Brown has described the memorial as "a huge concrete thing" that would be better put at the airport.
