Cabonne council general manager Bradley Byrnes told this month's council meeting the project "is proceeding to a feasibility study".

"We have engaged King and Campbell who were involved in main street masterplan to do a bit of an extension and look at the different options," Mr Byrnes said.

King and Campbell have met with members of the retirement village committee and the council is now awaiting a report.

The report, Mr Byrnes said: "will highlight the different options we have and the best course of action".

"There's still a bit of work to do," he added.

The project involves the construction of 14 aged care units on a property situated at the corner of Blatchford and Mill streets, Canowindra.

Cabonne Council loaned the Canowindra Retirement Village Project Association (CRVPA) $100,000 to purchase the site for the units in 2008.

A Development Application (DA 2010/80) approved for the project more than nine years ago remains current.