The Lake Jindabyne Shared Trail - from the pump station access road to the dam wall - is to remain closed following the discovery of asbestos contamination.
The Snowy River Shire Council says that public safety is the main priority and public access cannot be allowed until any threat is eliminated.
Work is being carried out with a management consultant on appropriate management strategies, safe public access and options for further site remediation.
Public access was restricted in June as a precautionary measure.
A survey of the site was completed by asbestos management specialists this spring. The survey involved removing all visible asbestos material from the surface of the site.
"Whilst this process has removed the obvious contamination, the council is concerned about the results that show there is asbestos buried within the site, and may therefore still pose a risk to the public as the material continues to surface over time," the council said in a statement.
"The council is following a process for site assessment, remediation and management in partnership with the landholders and asbestos contamination specialists.
"The next stages will include completing an asbestos management plan, followed by undertaking the recommended actions for both the short and long term use of the site.
"We are addressing the issue as efficiently and effectively as possible."
November is asbestos awareness month. The council is supporting the nationally run program to educate our community about the dangers of asbestos and will have Environmental Health Officers available to chat about asbestos awareness at the National Recycling Expo being held on Saturday at the Jindabyne Memorial Hall from 10am to 3pm.