Team New Zealand's successful run at the America's Cup has scored them another $NZ5 million from the government to keep the team alive.
The next host nation is still to be decided but Prime Minister Bill English says the government is assuming it will be New Zealand and expects funding for the team to be conditional on a home defence.
But he still won't say if the government will pitch in and help fund the cost of running the regatta in 2021.
"As we get into discussions it's becoming apparent that the issue of whether the government contributes financially is really just one of the issues and probably the most straightforward in the sense that you either do or you don't," he said.
The major issues are expected to be around facilities and infrastructure, particularly if Auckland is to host as the regatta would fall in the same year that New Zealand is due to host the APEC leaders' meetings.
"The defenders, as I understand it, have decided that the finals will be here. Certainly we're working on the assumption that it's going to be here," Mr English said.
It has been suggested that while Auckland looks most likely to host the finals, the challenger events could be hosted around the country, including in Wellington, Christchurch or Queenstown.
Economic Development Minister Simon Bridges and Sports Minister Jonathan Coleman jointly announced the $NZ5 million ($A4.8 million) for Team New Zealand on Monday.
It's understood the figure was named by the team and agreed by the government.
"In this case [it's] because they don't have any cash and want to retain the team at a time when they're vulnerable to being recruited by other challengers," Mr English said of the payment.
Mr Bridges said there would be significant benefits to hosting the Cup in New Zealand, with the 2000 and 2003 events generating a combined billion dollars.
