A public survey found most wanted dredging material debris disposed of behind the Worm Bay sand dunes, but dumping it slightly off-shore was considered the city's most realistic chance of securing a 10-year funding deal with the state government.

That option, referred to as "near shore", would mean the dredged material would create an artificial sand reef.

Dredging of the bay was long overdue, according to the council's harbor reference group member Rodney Blake, who said he and others were "vehemently opposed" to dumping the sand back into the bay.

He also slammed the costings in the consultants report as "grossly inflated".

"This is history repeating itself. This was done once before in the late '70s and it did not work. It didn't last a year and it was straight back in the dredge pocket," he said.

Engineering consultants say eventually some of the material from the artificial reef would end up either on the beach or dispersed offshore - a process which mimicked natural coastal behaviour.

A report outlining all five options for the future dredging of Warrnambool's port - which the council manages on behalf of the state government - will be presented to Monday's council meeting.

Mayor Tony Herbert said the biggest issue was the lack of any ongoing commitment from the government to fund regular dredging of the port which had created the significant problem now faced.

"Quite frankly, regardless of where we place any dredged material, we will continue to have major issues in the port unless we are guaranteed a sustained and regular dredging program and that requires a budget commitment from the state government ... and that's what we're going into battle for.

"More important than the location of the dredging spoil is more dollars for more dredging, more often.

"We need to move ahead with dredging in some form, because it is clearly very much needed, but we must be aware of what the science is telling us and also acknowledge the economic environment Victoria is in now as a result of the pandemic."

Cr Herbert said he understood the "near shore" option was not the most preferred option identified in a survey last year, which was to dispose of dredged material in specially constructed retention ponds behind the dunes at Worm Bay.

"Additional expert advice is now being considered which fully explains the science around the various options," he said.

"The responsible move now is to debate this option."

Revised and updated costings for the 10-year plan for dredging options revealed that onshore disposal of dredged material would require an investment of $5 million, more than double the cost of near-shore disposal, estimated to cost $2.2 million over the length of the project.

An "urgent" dredging of the bay was last carried out in 2012 with 8000 cubic metres removed at a cost of $140,000.

But that program involved dumping the sand along the beach rather than behind the dunes, sparking backlash from fishermen who said it was all washed back into the bay within months during large swells.

Mr Blake said the bay now needed an initial 30,000 cubic metres removed with 6000 to 8000 removed every three years after that.

Onshore and near-shore options being considered by the council include a regular dredging program every two to three years.

Cr Herbert thanked the harbour reference group who attended a large number of meetings and debated strongly the various options put forward.

"Although there has been some robust debate on the preferred location of the dredging spoils - and these differing views and opinions will be put on the record - there does however appear to be unanimous support for a long-term and regular dredging program requiring Victorian government funding, and an ongoing and regular commitment."

Mr Blake said the lax attitude of council staff had caused a delay in dredging works, and councillors were now under pressure to make a decision soon because funding applications needed to be in by October.

Mr Blake said the option councillors were being asked to back was "a cheap and nasty approach" but it was their preferred option because "they think state government won't fund it" otherwise.

He said the area near Worm Bay where he wanted dredging sand dumped was "a haven for vermin and foxes" who attacked the penguins.

"When you go fishing early in the morning you see the foxes run across the road," he said.

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