A solution to Christchurch City Council's outstanding insurance issues could take a major step forward this week, with mediation set to take place with its insurer Civic Assurance.

The on-going insurance wrangles have dogged the council since the initial earthquakes and have added to its dire financial situation.

The two parties have yet to agree on the council's almost billion dollar insurance claim, including whether Lancaster Park is a repair or rebuild.

Mediation takes place on Wednesday, Thursday and Friday this week.