Tenders have been called to demolish buildings at Lansdowne School repeatedly the target of vandalism and arson.
Paul James, Office of Treaty Settlements, said the government agency was ''actively assessing the options''.
''We have gone out for tenders to demolish Landsdowne School. We are still waiting on responses, which we will then evaluate. A decision is some weeks away,'' Mr James said.
Factors included demolition costs and other calls on OTS resources for maintaining land bank properties.
''This is public money being spent so a proper process and evaluation needs to run.
''We recognise the importance of the Lansdowne School site to the local community, and hope to make a decision, in consultation with local Maori, shortly.''
Yvette Grace, Rangitane o Wairarapa chairwoman, said the Lansdowne School site was subject to a Ngati Hamua hapu land claim spearheaded by the iwi authority.
She said the site ''has huge significance to Rangitane''.
''It was the site of the Ngati Hamua pa _ Matua Pa _ and so we hold an obligation to ensure the danger is removed. People's safety is our immediate priority,'' she said.
Pam McGregor, former Lansdowne School teacher and founder of a group pushing for the abandoned buildings to go, told the Times-Age earlier this month she believed a death might occur should arsonists strike again.
School mergers closed the Masterton school in December 2003 after almost a century of service and since there has been a string of serious arson and vandalism attacks.
Ms Grace said Rangitane o Wairarapa ''share the community's concerns with the current state of the former Lansdowne School site''.
''We have been working with the Crown, the Fire Brigade and Masterton District Council to reach the best outcome for our community,'' she said.
''We agree with the Office of Treaty Settlements that the dangerous buildings should be removed and the grounds made safe and we are working to ensure that this is done as soon as practicable.''
Ms Grace said the iwi authority was set to discuss ''with the Crown'' the future of the school site ''and other landbanked properties ... once our mandate to negotiate has been approved''.
Safety issues would still need to be considered, Ms Grace said.