The Government has put an early $5 million envelope on the table so Team New Zealand can retain its talent.

The early funding boost is similar to what the Government provided in the immediate aftermath of the disastrous 2013 America's Cup Challenge, to give TNZ breathing space while it worked to secure funding for its next bid.

It was a "no-strings" commitment, however the Government's resolve to be more involved in a defence, given the likelihood it would be held at least in part, on New Zealand waters appeared to be far stronger than four years ago.

REUTERS Emirates Team New Zealand Helmsman celebrates with skipper Glenn Ashby as they hold the America's Cup trophy after defeating Oracle Team USA.

Economic Development Minister Simon Bridges and Sports and Recreation Minister Jonathan Coleman made the announcement following Monday's Cabinet meeting, saying it would allow Team New Zealand to keep hold of its key staff, despite rival syndicates with deeper pockets circling.

READ MORE:

* Tracy Watkins: America's Cup glory, but at what price?

* Can Auckland handle hosting the Cup?

* America's Cup: Holders Team New Zealand eager to retain 'young, strong, great team'

* Burling told to bluff Spithill

"Team New Zealand displayed incredible talent and innovation during the 35th America's Cup campaign," said Bridges.

"This investment of $5 million will go some way towards protecting the valuable intellectual property, experience and skills that rest with key team members."

Planning for the defence was still in preliminary stages, and it was not yet a given that the 2021 event would even be held in New Zealand.

The Government would be keen to see that happen however, with Bridges saying that hosting a regatta in New Zealand "has the potential to generate significant economic benefits".

GETTY IMAGES It is not yet a given that the 2021 event will even be held in New Zealand.

"The America's Cup regattas hosted in New Zealand in 2000 and 2003 had a significant impact on the New Zealand economy generating around half a billion dollars of total value added per regatta, particularly in the marine and tourism sectors.

"New Zealand Trade and Enterprise also held a successful business leverage programme at the 34th America's Cup in San Francisco in 2013 which generated trade and investment deals for New Zealand worth $200 million and a further $120 million of new sales opportunities and investor interest."

Prime Minister Bill English said the Government would look to discuss the team's plans once they had arrived back in New Zealand.

"As we look ahead the America's Cup is one of these large events that the Government would work to support in any case as we would Cricket World Cup, Rugby World Cup."

An Auckland-held finals series was the preferred option for Team New Zealand, English said. He expressed his view that any funding should be conditional on a New Zealand-hosted event.

"The defenders as I understand it have decided the finals will be here...certainly we are working on the assumption that they will be here."

NZN VIDEO Bill English says the Americas Cup would be expected to bring hundreds of millions in economic growth if held in NZ.

And the funding of the challenge itself, was a separate discussion to Government funding to support infrastructure or the hosting of the event.

Yesterday, Team New Zealand chief operations officer Kevin Shoebridge said much work had occurred to rebuild the team with young talent - including helmsman Peter Burling, 26, and Blair Tuke, 27. It was vital to hold on those star sailors.

"There are a lot of key people in this team through design and sailing and everything. Everyone has worked so hard together as a team to finally win this thing, I think they will be more than motivated to keep that group together to try and defend it," he said.

The next America's Cup regatta would be the same year New Zealand was also hosting the Asia Pacific Economic Cooperation forum - which was made up of a number of major international events that spanned the whole year.

English said that would bring its own set of demands and complexities to what Auckland in particular, could handle.

Coleman said the win against US rivals Oracle, was an "inspirational achievement", which would would help inspire next generation of yachties.