Matterhorn, in one form or another, has called Cuba St home for 54 years.

One of Wellington's best known bars has been thrown a temporary lifeline to stay open for the most lucrative trading period of the year.

In July Matterhorn was given three months to close its doors, as landlord Willis Bond & Co advanced plans to redevelop the building next door, which was previously home to Farmers.

But owner Sean Marshall and Willis Bond & Co have struck a deal which will allow the bar to remain open until the end of February.

SUPPLIED Matterhorn owner Sean Marshall is relieved when the bar can remain open for another four months.

Marshall said he was unsure what would happen after that, however he continued to look for a new home for the establishment, which has been operating at its Cuba St site for 54 years.

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"It's a massive relief for everybody, with 20-odd staff, you know, everyone's got bills to pay, and have families [to support]…so we've bought ourselves a bit more time to try and figure something else out."

SUPPLIED The future of Matterhorn beyond February remains uncertain.

Marshall was relieved to have an additional four months, as finding a new home for the bar and restaurant had been a struggle.

"It's been bloody hard trying to find a new site. It's not easy trying to get the right site, and the right deal, at the right time, on the right terms," he said.

"So maybe end of February is the end of it all. I'm still working through it."

SUPPLIED Lord of the Rings star Elijah Wood, left, celebrated his 21st birthday at Matterhorn in 2002. Seen here with one-time Matterhorn bartender Jacob Briars - the man responsible for Matterhorn's signature cocktail The Falling Water.

He had had discussions with a couple of site owners, however "things fall over all the time", Marshall said.

"There's so many factors and ducks that need to line up and to get them all lining up it's been bloody hard. I still don't have anything confirmed at this point," he said.

"All I know is we've been given through to the end of February, and it's sort of a stay of execution for Matterhorn."

In the meantime, Marshall would continue to look for a new site.

"I'm still working on other things and still looking for other leases and stuff, but nothing moves quickly in the world of business."

The building which was home to the Farmers department store, which shares a wall with Matterhorn, has been closed since the 7.8 magnitude Kaikoura earthquake in November 2016.

In June, a sales memorandum for a nearby building claimed the site had been earmarked for a new development that would be a mix of retail, hospitality, residential and potentially office space.

In July, Willis Bond & Co managing director Mark McGuinness said plans for redevelopment had not been finalised, however confirmed the building would be strengthened.

Matterhorn began in 1963 as a cafe opened by Swiss immigrant Mary Tresch and her husband Tony. It has been a bar since 1997.