Emirates Team NZ will get the chance to defend the America's Cup in their own waters in 2021.

Auckland will host the 2021 America's Cup after an agreement over the structure of the base village was reached by Team NZ, Auckland Council and the Government.

It is understood the new village deal comes after a further plan was proposed by Emirates Team New Zealand to bring substantial savings to the costly revamp of Wynyard Point proposed by Economic Development Minister David Parker.

The Team New Zealand plan essentially eliminates the need for any extension of the Halsey Wharf which brings with it a significant cost reduction and situates the team in the Viaduct Events Centre. One team, likely to be Challenger of Record Luna Rossa, would then be housed on the extension on Hobson Wharf, while the remainder of the team bases line up along the Wynyard Wharf.

EMIRATES TEAM NZ The new America's Cup bases plan agreed to for Auckland.

While the approved plan means something of a scattered village, it keeps Team New Zealand as the focal point and, crucially, means they get to the defend the Cup on their own waters after months of uncertainty.

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The plan is pending approval by the Auckland Council governing body after Finance Minister Grant Robertson gave it the final sign off..

"This is a huge relief to have reached the agreement with Government and Council over the event venue and host agreement. Our determination to have the event in Auckland never wavered despite plenty of challenges right up until the 11th hour,"Team New Zealand CEO Grant Dalton said.

"It has been a very complex and time-consuming process for everyone so it is pleasing that all parties have seen the collective benefit of the innovative base proposal put forward by Emirates Team New Zealand late last week..

"Excitingly, what we have in the agreements is essentially the start of the event build.

"In saying this, there isn't time to celebrate, the clock has been ticking for the past nine months and there is a huge amount to organise and build in a very tight timeline. But it is a line in the sand where everyone collectively can now focus on working together to deliver the best America's Cup in history and the most successful and inclusive major event New Zealand has ever seen for all New Zealanders."

Parker felt this was the best outcome under the circumstances.

"I am very pleased to advise that we have succeeded in negotiating a venue on the Auckland waterfront that all New Zealanders can be proud of. It significantly reduces the intrusion into the harbour at the lowest practical cost," Parker said in a statement.

"The event will also deliver economic benefits to Auckland and the country.

"Prime Minister Jacinda Ardern, Mayor Goff and I all stated our commitment to limiting the intrusion into the harbour, while achieving a word class venue for the Cup event, and this delivers that.

"Our work in reaching this point has seen a major cost reduction for taxpayers and Auckland ratepayers of more than $50 million, compared to other options. This is a fantastic achievement and testament to the time and effort we have invested to reach the best outcome possiblle."

Parker thanked ETNZ for their cooperative approach that helped achieve the final outcome.

The construction savings will allow for a hosting fee to run the event.

The Viaduct Events Centre will become redundant once the Sky City Convention Centre is completed for housing major events, provide an ideal base for Team New Zealand.

They could be in there by October which would be a boost for their defence plans, allowing them to have a base for their new boat.

Dalton is in Milan providing the prospective challenging fleet with details over the class rule for the new 75-foot foiling monohulls.

The timing of this announcement will be well received there given the lingering doubts over the ability to get the village plan sorted out.

There were genuine, and increasing concerns the event could have been lost to Auckland which would have been a disaster given the lengths Emirates team NZ went to winning it bacjk from Oracle Team USA in Bermuda last year.

New Zealand hosted the 2000 and 2003 America's Cups in Auckland, regattas that were motivation to develop the Viaduct Basin into what is now a thriving business and tourist area as well as housing.

"We have agreed a base configuration that is less expensive than previous options and requires a much smaller extension into the harbour. It allows the earlier removal of hazardous substance tanks from the southern part of the Point, is more straightforward to consent, will be quicker to construct and creates a positive legacy for Auckland," Auckland Mayor Phil Goff said

The location, known as Wynyard-Hobson, has evolved from several options on the table. It entails only about 6600 square metre intrusion into the harbour at Hobson Wharf, compared to 9,900 square metres under the earlier Point Halsey option.

Other options had envisaged intrusions of 22,800 square metres.

"This gives ETNZ the certainty it needs to proceed with planning for the event."