Wellington City Council looks set to reverse a decision to close a composting plant at the city's southern landfill.
Last December, the council decided to close the plant after complaints about the smell.
The plant uses food waste from restaurants and sludge from the city's sewage treatment plant.
Living Earth which runs the plant, says talks about the plant's future are at a delicate stage, but it hopes to keep the contract.
Managing director George Fietje says farmers take the compost to reduce the use of fertiliser, which has soared in price by 300% this year.
City council member Celia Wade Brown says the city's recycling system is under review, but composting will continue in some form.
She says a final decision on the plant's fate is due in December when the Living Earth contract expires.
