The 2001 Oscars at the Shrine were to have been the last
The 3,500-seat Kodak Theatre is still undergoing construction ahead of the 24 March ceremony.
And the Academy of Motion Picture Arts and Sciences said on Thursday the developer had until 15 October to resolve safety issues.
The academy's decision comes in the wake of the suicide attacks on New York and Washington on 11 September and the ensuing fears over national security.
Academy spokeswoman Leslie Unger said: "It would be silly to say that people's awareness hasn't been heightened by what's happened.
"The Oscars have an enormous audience. Somebody who wants attention knows they could find it at the show."
Checks
The academy claimed that the Kodak's developer, TrizecHahn, had not followed security measures agreed on at the start of the project.
In particular, the academy wanted to have access to buildings next to the theatre in order to carry out security checks.
The theatre is the centrepiece of a larger retail and entertainment complex called Hollywood & Highland being built by TrizecHahn.
A spokeswoman for TrizecHahn insisted the company was taking the academy's concerns seriously.
"We enjoy working with the academy and we're confident that we'll be able to meet their needs," said Beth Harris, a marketing director for the firm.
The academy announced at the beginning of this year that the Kodak would become the new permanent home of the annual Oscars ceremony in 2002.
Fund
The Oscars, coming up to its 74th year have in recent years moved between two downtown venues, the Shrine Auditorium and the Dorothy Chandler Pavilion.
Another course of action brought about by the suicide attacks was also announced by the US movie industry on Thursday.
The cinema owners' association said it would be donating next Tuesday's box office proceeds to aid families of the victims and the relief effort.
A spokesman said the day had been named Victims' Benefit Day.