The group has been moving out of their premises at the Umbarra Cultural Centre, with president Phil Baldwin saying it was "very generous" of the owners to let them use the land for the last 10 years.

"Temporarily we are homeless, but we will continue operating as you can see," he said.

He was speaking to Australia Community Media after installing Bermagui-themed Christmas signs along the town's main street, in a combined project with the local chamber of commerce and primary school.

READ MORE: Bermagui Christmas signs brighten main street, reflect town life

The new base for the shed is just south of town on the Tathra-Bermagui Rd at the town's former landfill site.

A Bega Valley Shire Council spokesperson said remediation works at the site were complete and were estimated to cost $200,000.

They said the work involved stripping back of material and then capping with a relatively impervious layer to meet the Environmental Protection Agency requirements.

"This layer is 'virgin excavated natural material' from our waste facility, such as decomposed granite. We also compacted the area on the site where the structure was to go," they said.

"Remediation work needed to be done and had been planned even before the request came from the Bermagui Men's Shed to use the site.

"It is great that this piece of land, which might otherwise have sat dormant, can be used for a great project like the men's shed."

Mr Baldwin thanked council for its efforts as its staff had needed to do a "tremendous amount of work to rehabilitate the site".

He said his group is expecting to receive a $40,000 grant from the federal government towards construction of their new shed - a promise from Fiona Kotvojs, who ran as the Liberals' candidate for Eden-Monaro in the last election.

"It will cost $200,000 to build the shed and with the $40,000 we will be two-thirds of the way with it," he said.

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The shed will span 19x18metres and once it is built the group will considering allowing different community organisations to access it, for instance Mr Baldwin said the University of the Third Age could possibly make use of it, or they could potentially involve women.

"I've been asked many times 'can women join?'" he said.

"But at the moment, no. It's geared around men's health."

He expected the construction of the shed would begin within the next 12 months.