The A4811 New Road in Newtown was closed on Monday after a large section of the Bethel Chapel collapsed.
The closure was in place until the building is considered safe, and Powys County Council has now said that progress has been made on plans for demolition work – although there is as yet no time scale for when the road will re-open.
A spokesman for the council said discussions had taken place with the owner of the building and there was an agreement over the level of demolition that needs to take place, and a firm has been appointed to carry out the work.
The gothic church had been sold in 2008 and was in a state of disrepair.
A huge section of the roof gave way on Monday, following heavy rain overnight.
A spokesman for Powys County Council said: "The road will not re-open until the building has been demolished to a safe level.
"The level of the demolition has been agreed and the owner of the building has been informed. The owner has appointed a contractor to carry out the work.”