The 2020 event, which injects an estimated $16 million into the local economy and attracts elite athletes from across the globe, was cancelled due to the implications of the COVID-19 health pandemic.

The original date in May was rescheduled to September before organisers pulled the pin on July 7 as travel restrictions and hosting major events made it impossible to stage the race.

Port Macquarie-Hastings Council will now work with Destination NSW and Ironman Oceania to extend the 2019-2021 tripartite hosting agreement into 2022.

"In 2019, the Ironman Port Macquarie event attracted more than 9,800 visitors to our region, injecting an estimated $16 million into the local economy," Liesa Davies, acting director said.

"It was disappointing that Ironman 2020 was cancelled as a result of COVID-19, and council has resolved to negotiate a one year extension to the current three year Ironman contract which is due to end after the 2021 event.

"The May 2021 event will be the 25th year Ironman has been held in Port Macquarie, and Ironman Australia's 35th anniversary, so we are hoping that circumstances will allow the event to proceed.

"Should a one-year contract extension be agreed to cover the 2022 event, it is expected that during 2021, Ironman and council will talk further around potential hosting of the event beyond 2022."

Before its cancellation, the 2020 Ironman 70.3 event had sold out for the fourth year running. In 2019, more than 3000 athletes tackled the full 226km challenge or the half distance course.

The 2021 event has been scheduled for May 2.