Qube Logistics could continue operating from Horsham's freight terminal until April after applying for a lease extension.
The Australian Rail Track Corporation granted Qube a three-month lease in November to operate from the Mill Street site.
The short-term lease was granted until Qube could come to a commercial agreement with Wimmera Container Line to use the new Wimmera Intermodal Freight Terminal at Dooen.
Qube corporate affairs director Paul White said the company's initial lease included an option for three three-month extensions.
"We have exercised an option to remain at the terminal for a further three months," he said.
"We have been continuing negotiations with Wimmera Container Line to gain access to Dooen and that is our long-term plan.
"We do understand that it is frustrating for the residents and frustrating for us but it is really our intention to go to Dooen."
Rail track corporation spokesman Jane Lavender-Baker said the corporation would consider granting the extension.
"The first extension is expected to be taken up by Qube on February 1," she said.
"Ultimately the decision to extend the lease is a matter for the Victorian Department of Transport, which has the power to terminate the current arrangements if they choose to do so."
Horsham Rural City Mayor David Grimble said he was disappointed a commercial agreement between Qube and Wimmera Container Line could not be reached by January 30.
"I was hoping to resolve this in the first three-month block but we haven't been able to do that," he said.
"This is really about timelines and the inconvenience the community has had to deal with, so we need it resolved sooner rather than later.
"We have to make it clear that it is a priority for us and we want to see it as a priority for the State Government, given its level of funding for the new terminal."
Cr Grimble said council would send a deputation to lobby Transport Minister Terry Mulder to have the Mill Street site decommissioned. Horsham North Residents Committee secretary Rae Nelson said the committee had expected Qube to continue operations at the Mill Street site until at least April.
"The committee's thoughts and feelings were that this was going to happen so we aren't surprised," she said.
"Yes, I am disappointed but no, I am not surprised.
"This saga has more episodes than Days of our Lives and a cast of a thousand with all the players involved.
"The bottom line is that when the new site at Dooen was completed, it was with the ideology that the Mill Street terminal would be closed down."
Wimmera Container Line has announced that it will form a joint venture with Specialised Bulk Rail a bulk-handling rail company associated with transporter SCT Logistics.
Wimmera Container Line general manager Doug Golden said council, VicTrack and Rail Safety Victoria needed to approve the joint venture.
He said he hoped the venture would improve negotiations with Qube, which would continue tomorrow.
"It is exciting to be part of what is a national rail terminal operator and this certainly places Wimmera Container Line Dooen in the national context," he said.
"It enables us to work with a larger organisation with regard to what we can transport to and from the region.
"We are hoping this also enables a quicker resolution with Qube."