Mr Nicholas said international events, courses and seminars would be drawn to the area by the complex of three artificial pitches, eight to 12 changing rooms, indoor sports arena, conference centre, floodlights and a car park.
The confederation said it would also spend up to $300,000 a year on its Football for Life promotions in Auckland.
Mr Nicholas said that with 12 million Pacific Island people in the Oceania region, it made sense for the confederation to house its programmes in the world's most Pacific city.
He said the proposal was a concept only by Fifa and OFC until the matter of site allocation had been worked through with the council, local board and stakeholders in the reserve.
The confederation would use the facility for a third of the year and intended that for the rest of the time it could be used by other organisations.
The proposal has been put to Mayor Len Brown and Orakei Local Board chairwoman Desley Simpson.
Yesterday, he outlined the plan to members of the council's parks, recreation and heritage forum, which resolved to support it in principle.
The reserve is on a former quarry and municipal rubbish dump, next to the University of Auckland's Colin Maiden Park, Auckland Netball Centre and Auckland Tennis Park.
"It's an exciting offer to the city which gives an opportunity to address a shortage of sportsfields in this area," said Ian Maxwell, who is the council's manager of parks, sports and recreation.
Officers were looking at allocation of reserve for the site with the Orakei Local Board.
Ms Simpson said the proposal would go to the board meeting next month.
"It looks a very attractive proposal at first glance," she said.
"One of its advantages is that they are prepared to put that investment into Auckland which would have strong benefits."
Eastern Suburbs Football Club chairman Chris Ruffell said the confederation's proposal offered a "light at the end of the tunnel" but did not ease the need for development work at other parks.
He said the alternative to the council working on improving field availability was to cut back player numbers next winter.
Glover Park has been closed 10 weeks in a row, Crossfield Reserve was closed seven weeks this season and two of the five fields on Madills Farm were often closed.
Oceania would use the facility from late January until early April for its development work with players of the Pacific Island nations.
For the rest of the year, the facility would be available to the local community, including the Eastern Suburbs and Ellerslie AFC clubs.
OFC PROPOSAL
Plan for Tamaki multi-sports complex:
Three artificial football pitches.
Indoor sports arena.
Conference centre.
Changing rooms.
Floodlights.
Carpark.
