Shifting the Royal New Zealand Navy base from Devonport to Whangārei would make a "substantial difference" to the Northland city and pour millions into the district's economy every month.
The Defence Force is investigating the potential cost of moving Devonport Naval Base, and moving part of the navy to Whangārei is one of the options.
Defence Minister Ron Mark said there is a study, which is in its early stages, titled the Future of Devonport Navy Base.
"This is a routine feasibility study which supplements the work on the future of Ports of Auckland study. I expect to receive this later in the year."
Whangārei MP Dr Shane Reti submitted a written question to Mark asking him about any initiatives, reports, requests or other communications that would indicate that Whangārei would be a suitable site for future relocation of the navy from Devonport.
In response, Mark said: "I have received a briefing which notes that the New Zealand Defence Force will be initiating a study on future naval port options.
"Suitability, or otherwise, of relocation of naval port facilities to an alternate site such as Whangārei will be informed by the results of this study."
Reti said every household which moves to Whangārei would expect to spend $1000 a week on everyday expenses like transport costs, food and electricity. That means 1000 navy families would spend about $1 million a week.
"That would cycle through the Whangārei and Northland economy as well."
Reti said Whangārei's marine industry has built units for offshore patrol vehicles and frigates in the past. He wants to see about a third of the navy's operation moved to Whangārei.
"It doesn't make sense to have all the navy in Auckland."
He said in the instance of a nuclear or other attack which wiped out Devonport, Whangārei is nearby and able to respond quickly. He said two potential sites are Marsden Point and Port Nikau - which is privately owned.
Reti said Auckland is struggling with traffic and housing and unlike Picton, Whangārei is not an earthquake risk.
Picton was one of five options outlined in a 2013 Defence Force document for the future of the Devonport base.
A briefing for Mark prepared last December said the 2013 report had been "superseded" by the Defence White Paper 2016.
Among other things, the paper said Auckland remained the best location for the navy's main operating base but if the operating model changed the conclusions of the analysis would need to be revisited.
The feasibility study on options for moving Ports of Auckland had "implications" for the future of the Devonport base, and as a result a fresh study on the costs of moving the base is under way.
Whangārei has been touted in the past, and Northland Chamber of Commerce chief executive Tony Collins said he wants to see Whangārei included in the conversation on the navy's future.
Collins said there were several good reasons making Whangārei a suitable location.
He said the navy's "main theatre of operation" is in the Pacific - providing aid, search and rescue or working with fisheries. "Immediately we're closer than Picton."
Collins said Whangārei has a long history in the engineering industry, it has the country's largest deep-water port, and it is only a two-hour drive from Auckland.
"There's an opportunity for associated industries to be established or move here from Auckland."
He said having the navy visible in the community opens up opportunities for young people they might not have otherwise thought of.
"Bringing a large employer into Whangārei, it can make a substantial difference."