UKI'S historical Mount Warning Hotel will be demolished once the insurance company has finalised its inquiries.
"It will be all worked out in a meeting," Publican Geoff Brown said.
NSW Rural Fire Service Inspector Bob Wilcox said the pub's badly burnt skeleton was unstable.
"It's too dangerous too start pulling apart," he said.
"There's a risk going inside there and it will be up to the insurance company now to decide what to do."
Two grand pianos on the second story of the pub were completely destroyed along with priceless memorabilia from the past 99 years.
Tweed-Byron crime manager acting Inspector Saul Wiseman said a report would be prepared for the coroner.
"The coroner can help to make recommendations for safety," he said.
The cause of the fire hasn't been confirmed but Insp Wilcox said it is likely to have been caused by an electrical fault.
On Saturday a blaze started in the pub about 10.30pm destroying most of the pub.
The flames re-ignited again in the early hours of Monday morning and destroyed the entire back end of the pub.