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The door is open for a Commonwealth Games bid in 2018 - if Auckland councils agree to help underwrite it.
Sport and Recreation Minister Murray McCully told the Herald the Government would reconsider funding research into whether Auckland could host the event again.
But before that happens, he wants Auckland councils to come up with a system for helping the Government underwrite several hundred million dollars that could be lost if the games go ahead.
Yesterday the Herald reported that Minister for Economic Development Gerry Brownlee had withdrawn $500,000 earmarked by the previous Government for a study into whether Auckland could stage the event.
In a letter to the New Zealand Olympic Committee, the Ministry of Economic Development's industry and regional development deputy secretary, Mark Steel, said the money promised by Labour had been rescinded - partly because not all councils in the area supported giving money to the bid.
Yesterday Mr McCully said the Government would consider giving something less than the $500,000 originally promised, if it could be shown that councils were really enthusiastic about hosting the games.
"There's no point lodging a bid if you're not prepared to host it," he said.
"Auckland City has put its hand up but the other cities are yet to demonstrate the same enthusiasm."
Mr McCully said he would report back to Mr Brownlee once he knew whether other councils were prepared to make a substantial financial commitment towards the games.
On Monday, North Shore Mayor Andrew Williams said the cost of hosting the Games had risen since they were was last held here, in 1990, to the point where New Zealand was no longer in the running.
Manukau Mayor Len Brown said he liked the idea of hosting the Games but all councils in the region would need to contribute.
Manukau and North Shore councils did not agree to contribute to the feasibility study last year, when the Government was going to contribute $500,000.
