The council has teamed up with Warrenpoint Harbour Authority to look at the possibility of providing a state-of-the-art maritime facility in the popular County Down tourist spot.
An in-depth technical, feasibility study and economic appraisal has now been commissioned by the marina project steering committee.
The council said RPS consulting engineers and FPM accountants will carry out this process within the coming weeks.
The preferred location identified is in front of Osborne Promenade in the town, at a location between Warrenpoint Slipway and the existing breakwater (pier).
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Newry and Mourne Mayor Colman Burns said: "The proposed project if developed would enhance the economic potential of tourism in the region as a whole and in addition open the Carlingford Lough area to international visitors.
"It would also complement the Warrenpoint/Carlingford Lough coastline and the ongoing activity of Warrenpoint Harbour Authority and Warrenpoint seafront development.
"It will also provide the potential for much needed job opportunities in the Newry and Mourne District."
The Mayor said the project would be subject to securing necessary funding and planning permission, as well as successful public consultation on the proposals.
Peter Conway, Chief Executive of Warrenpoint Harbour Authority, said: "This is a very exciting project. The board of the Harbour Authority is committed to working with the council to make this long held dream a reality.
"The Authority is prepared to contribute towards the capital infrastructure and is willing to provide expertise in driving the project forward.
"The new marina will be designed to facilitate the requirements of the Omeath Ferry service, the local yachting fraternity, visiting tall ships and public slipway access.
"We are very please to be associated with this potential enhancement of boating facilities that will be a great boost for tourism in Warrenpoint and the Newry and Mourne region," added Mr Conway.
(PR/JM)
