Nirranda is a chance to pull out of division one, which could have ramifications for the competition.

Koroit could then step up to the top division, and East Warrnambool-YCW dropping to division two was the initial plan, though the club has confirmed that would not happen.

Association chairperson Gordon McLeod said discussions were ongoing.

"We have spoken to Koroit and spoken to East but until we know what Nirranda's new administration is doing, we are in limbo,” he said.

"It all depends on what happens when Nirranda make a decision. But until they get back to us we can't say anything.”

Nirranda president Michael Walsh, who is stepping down, said it would decide its future on Sunday.

“A final decision will be made at our AGM on whether or not we stay in division one,” he said.

Koroit revealed it had been offered to move up to division one to fill the potential void left by Nirranda.

President Jimmy Langdon said the option was being considered.

"We definitely haven't made a decision," he said.

"We aren't ready capability wise, we just aren't at that level.

"Hopefully in the next two weeks we can pick up a couple of recruits and then we would think about it.

“We didn't make the finals last year, so if we don't pick up a couple of blokes it would be tough.

“Our decision is governed by recruits.”