That would return to the Cup to its original home, where the Americans won the first regatta back in 1851.
Prime Minister Jacinda Ardern congratulated the Kiwi sailors just minutes after skipper Peter Burling led his crew to victory.
"On behalf of all of Aotearoa I congratulate Grant Dalton, Peter Burling and the whole team, those on the water and off it, for their achievements. Peter Burling and his crew of skilled sailors showed what they were capable of in all conditions, highlighting the tactical brilliance and sheer hard work of everyone involved.
"Following a hard year, Team New Zealand provided such optimism and excitement. I know with all the international limitations that Covid created this wasn't the competition they expected, but they've made us so proud."
Minister responsible for the America's Cup Stuart Nash said he wanted to see it all happen again in 2023.
"The Government has already agreed that the successful America's Cup team will be
supported to stay together while it plans its next defence of the Auld Mug," Nash said.
"Cabinet has agreed to invest in the team from within existing budgets. It would be subject to a number of conditions, including an expectation the Cup will be defended in New Zealand.
"The defence of the Cup offers a global opportunity to promote New Zealand as an innovative and successful nation, with spin-offs in areas like tourism and export deals."
He said no request for support has yet been made, but there has been government assistance following every America's Cup since 2003.
"I anticipate a similar request will be made this year."
"The final details are still subject to negotiations, however it is likely to be a similar sum to that paid after AC35 in Bermuda in 2017, when $5 million went towards the team to help it prepare for AC36 this year," Nash said.
Sport and Recreation Minister Grant Robertson also offered his congratulations to Team NZ.
"I want to express our admiration and congratulations to Team NZ. This is a great day for the team and a great day for the whole of Aotearoa."
He said the team was "an extraordinary group of people" and Burling had "nerves of steel".
He also acknowledged how special it was to be able to hold the regatta in the middle of a global pandemic.
The science and innovation behind the event had also created jobs, he added.
He said putting aside some money to retain the core of the team is something that's happened previously.
Work still needed to be done on the finer details, but he said it was good to commit funding now because some of the sailors may expect offers to move on from Team NZ.
He said the event had provided economic benefits as well as national pride.
Discussions on the next defence were yet to take place because everyone had been focused on the event, he said.
"The speed of these boats, the amazing technology ... I've certainly enjoyed the racing.
Robertson also paid tribute to Luna Rossa, calling Jimmy Spithill a "classy sailor".
