Lyall Bay Reef Charitable Trust's resource consent for the project has been extended by Greater Wellington regional council until January 2014.
It has been on the backburner since 2007 as rising costs and funding problems created uncertainty. But trust chairman Tony Lines said the reef would be built if the technology developed to an acceptable level.
"We are keeping a close eye on other projects around the world to see how they turn out and if they come out on budget.
"We want to get this done, but are happy to sit back and watch other people test drive the technology."
Surfer Simon Parkin, 50, said Lyall Bay was Wellington's only good surf spot. He urged the trust to "go for it".
Brian Burke, 58, also a surfer, said he would welcome the reef, but had thought the idea was dead. "I don't think it will happen here - not a chance."
The reef had a $1.55m price tag when it gained resource consent in 2003. But Mr Lines estimated the cost could now be about $3m.
"Technical challenges are always going to be difficult when working in a dynamic marine environment. Most projects around the world have resulted in disappointment and additional costs.
"We want to make sure we do it right and keep to the budget."
A feasibility study done in 2001 found that building the reef could increase the number of quality surfing days in the bay from 27 a year to between 118 and 142 days.