Auckland Council has taken back possession of the Waiheke Library site.
Since Mainzeal went into receivership on Waitangi Day its receivers PricewaterhouseCoopers were in possession of the site at Artworks in Oneroa.
Auckland Council has been paying for security at the site since then.
Local board chairwoman Faye Storer says she was contracted by the council's central libraries manager Geoff Chamberlain on Friday.
"He told me the contract with Mainzeal had been terminated and that council is back in possession of the library site and is seeking a new contractor.
"It will start talking with interested parties this week," she says.
Meanwhile, Vector is starting work on underground power outside the site this week.
- Waiheke Marketplace
Are our classrooms becoming overcrowded?