Construction was scheduled for between 2020 and 2025 and could cost up to $114 million.
Rotorua Mayor Steve Chadwick and MP Todd McClay said the road was important for the district's future economic growth, but Te Arawa hapu Ngati Hurunga Te Rangi, Ngati Te Roro o Te Rangi and Ngati Uenukukopako oppose the road saying they would prefer an upgrade to Te Ngae Rd.
NZTA Waikato/Bay of Plenty regional director Harry Wilson said yesterday the investigation phase was all about what was the best solution for transportation in Rotorua and the agency was waiting on the Rotorua District Council to complete its "spatial plan" for the district before it could move ahead.
"All options are parked right now.
"The risk is the whole of Rotorua's future development in that corridor being designed around a road, which is not want we want to do.
"The options go beyond just roading, it's about linking the community as well.
"We are just trying to get ahead of the game and find the best solution for Rotorua.
"I'd like to think we will have something to show people [in] between six and 12 months," he said.
Ngati Te Roro o Te Rangi spokesman Paraone Pirika said the hapu were also going through a process of organising memorandum of understandings with the NZTA and the council.
"I'm pleased we are all having another look at it," he said.
Positive Rotorua Environmental Society spokesman Nireaha Pirika said it was business as usual for the society, "we are still trying to get our point across".
"As for a time frame, this is dependent on the district council, but we're very happy everything has gone back to square one.
"But, this is good for us, we haven't forced them to do it because it's [iwi consultation] the right thing to do," he said.
Rotorua District Council Strategy and Partnerships group manager Jean-Paul Gaston said the council was yet to finalise its spatial plan.
"This process needs to be completed in order to identify future land-use and land needs for all of Rotorua district, including the eastern area.
"It's hoped to have this work largely finished by the end of the year. Key agencies, like NZTA, see development of a spatial plan for Rotorua as an important input into their future infrastructure planning," he said.