The latest report could still recommend the construction of a seawall, breakwall or an artificial reef.

On a recent visit to the Central Coast, Mr O'Farrell and environment minister Robyn Parker said the channel study was ready to proceed.

The $100,000 tender for the project was awarded to engineering consultants Cardno.

"Cardno has been chosen to develop independent computer modelling of the channel that will assess management options, including a possible breakwall or artificial reef," Mr O' Farrell said.

He said the channel study had been an election commitment made in January to correct "16 years of inaction by Labor".

"My government is determined to find the right solution for the channel and is delivering on its commitment," he said.

Ms Parker said an interim report from Cardno was due in June, and the investigation would be completed later in 2012.

Member for The Entrance Chris Spence said the investigation was "a significant move forward for a project the community had lobbied for strongly for several years".

However, Wyong Council received a report in May from Umwelt and SMEC indicating a breakwall could severely impact The Entrance North beach by increasing erosion.

Mayor Bob Graham said the government would be better off giving the council $100,000 to help rebuild Alison Homestead.

"I'm not sure what another study of the channel will prove on top of all the other studies completed, and even if it does show something, which I doubt, I don't think the government will have funds to do anything," he said.

"I know the council certainly don't."