Catholic Education Sandhurst has lodged plans to demolish a former St Kilian's Parish office building at St Kilian's School and Parish after a sinkhole opened in 2022.
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The sinkhole appeared beside the two-storey St Kilian's Parish building known as the White House, located between the church and the St Kilian's Primary School.
"At the recommendation of structural and civil engineers, the sinkhole was filled as per their instructions, and a precautionary exclusion zone was established in the school and parish grounds," Catholic Education Sandhurst executive director Kate Fogarty said.
"Throughout this process the St Kilians School and Parish communities have exercised extreme caution to ensure the safety of all."
Engineers told the organisation works to cap the hole and structurally support the building would not provide long term assurance of the building's stability, Ms Fogarty said.
Sinkhole 'compromised' structure: engineer
In 2022, a spokesperson for the engineer group C+S Consult told the Bendigo Advertiser the sinkhole had "compromised" the building's structure.
The size of the hole was about three-metres wide and 1.5 metres deep, the spokesperson said.
It is unconfirmed whether the hole connects to a mineshaft. The school and parish were built during the gold rush era, adjacent to the Bendigo Creek where gold was first discovered in Bendigo.
City of Greater Bendigo to consider application
"Catholic Education Sandhurst has received approval from Bishop Shane Mackinlay to begin planning for the demolition on behalf of St Kilian's School and Parish," Ms Fogarty said.
The organisation was seeking approval from the City of Greater Bendigo's planning department for the works, which would need to consider heritage requirements of the building.
The demolition could provide a "wonderful opportunity... to create something really lovely, and a shared space that will further strengthen the ties between St Kilian's school and parish", Ms Fogarty said.