Warrnambool City Council is planning to spend $180,000 to put a fence around the saleyards before deciding whether to close the facility permanently.
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The fence is required after a WorkSafe investigation was sparked when a cow escaped in February while it was being unloaded.
The cow went on the run, damaging a number of cars and had to be put down.
It's understood the fence has to be erected before the end of November to comply with a WorkSafe order.
But the council is expected to consider the future of the saleyards at its November 7 meeting.
In reply to questions about the fence, a council spokesman said it planned to invest in fencing around the saleyards to ensure the facilities could operate safely.
"The extent of the fencing will soon be finalised but council is looking to meet its safety obligations through the fencing project and with changes to safe work methods," the spokesman said.
"Council will consult with WorkSafe on this dual approach to saleyards' safety.
"We will ensure the safest possible operation while balancing public expenditure on a facility that is awaiting a council decision in relation to its long-term future.
"As with all council operations, safety will be the paramount consideration in determining the right course of action."
WorkSafe ordered a review of the saleyards soon after a concrete walkway collapsed in October 2020 - described as "like an earthquake" - which led to the buyer walkways being condemned, barricaded off, later demolished and then replaced.
Subsequent reviews found the whole yards were dilapidated with auctioneer catwalks, roofing, loading ramps, rails and fittings in urgent need of replacement.
Hundreds of pages of documents released by the city in August said "council faces imminent legal risks if it chooses not to invest in the facility and to keep operating".
"Many parts of the facility had effectively reached the end of their useful life," the report said.
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