The report,  by consultants MMC Link, has also recommended that the council clarify the intent of running two museum sites at Royal Park and Inveresk; strengthen the museum's marketing, promotion and social media presence; and seek external investment, including renewal of the state government's funding agreement.

It recommended that the museum link into national partnerships that would  boost its profile and build a clearly defined forward events program.

Council officers in turn have recommended to aldermen that a decision over entrance fees be delayed until there is more clarity around the future directions of the museum and funding arrangements of the council and state government.

The Launceston City Council provided $4.3 million to cover the museum's operating costs in 2011-12, to the state government's $1.2 million.

The council's contribution grew by a little more than $1 million within four years while the state's contribution grew by $98,800 over the same time.

Launceston is widely considered to have the country's best regional museum and to hold Tasmania's best colonial works, and is visited 130,000 times a year.

The collection was valued at $231.9 million three years ago.