Wodonga's newly elected mayor Kevin Poulton has backed an extension of the public holiday for the Gold Cup meeting beyond 2021.
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His personal view for the public holiday to be retained is a major shift from his mayoral predecessor Anna Speedie, who voted against an extension twice since its inception in 2014.
Cr Poulton said he acknowledged the "mixed view" among the business community towards the public holiday which was previously held on Melbourne Cup day.
"Personally I think it's great for Wodonga to have its own identity," he said.
"It's definitely an important event on the calendar and it's one I will support.
"But obviously it has to come to council and a decision will be made and all things considered early next year."
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Those still on council from the 2018 vote were split with Cr Kat Bennett and Cr Libby Hall opposed and Cr Ron Mildren and Cr John Watson in favour.
Council support is needed before the Victorian government officially gazettes the holiday.
Racing Wodonga general manager Steve Wright confirmed preliminary talks had started with council about an extension.
"We were just waiting for the new council to be elected before we go kick off the formal process," he said.
"It is really important to us so hopefully we can get an extension beyond next year.
"One of things people don't realise is that this is not an additional public holiday.
"It is a replacement for Melbourne Cup.
"It has become the biggest social event in Wodonga and grown enormously in a short space of time, but 2020 unfortunately has robbed us of the chance to build on that growing momentum."
Business Wodonga chairman Graham Jenkin said he was also personally in favour of the cup holiday staying beyond 2021.
"My personal view is Business Wodonga would be supportive of the extension," he said.
"We would see the economic value that it brings, the amount of employment it generates, the labour hire to erect and pull down marquees, the positive impact on catering businesses and jobs for hospitality workers as being good things.
"But unfortunately it's another casualty of COVID."
Multiple cafes across Wodonga elected to shut their doors on Friday for the public holiday after also enduring another public holiday for the AFL grand final last month.