"The bike and equipment that Linda used was the overall package that CNZ believe was optimal for Linda's performance especially regarding her position on the bike. Aerodynamics is one the biggest factors in time trial performance.
"CNZ has a structured programme around equipment optimisation for riders across its track programme and have taken this same attention to detail for the Individual Time Trial with Villumsen.
"CNZ has been in on-going discussions with Linda's professional team and both parties understand the situation."
Earlier today, UHC head Mike Tamayo confirmed to Cyclingnews website that the team considered sacking Villumsen.
"It was discussed in order to protect our sponsors but it wasn't something that was acted upon. We considered all of our options with all of our sponsors," he told Cyclingnews.
"We weren't happy right away. Our job as a trade team is to protect our sponsors. So of course it caught us off guard but it was more the timing than anything else. It was last minute and it didn't give us much opportunity to discuss it with our sponsors and make sure that they knew what was going on. That was the most troubling part of it."
Tamayo denied claims that the team ripped her contract up on the spot and later back-tracked. He said he had been told she changed models because the black one was a better fit.
"Our understanding from Cycling New Zealand's performance director was that she couldn't get the front end of her position low enough on her team bike and that they had to use a different bike and she had to use a smaller bike that our team does not make. It was more a matter of fit than one of technology."
Tamayo felt Villumsen had taken a calculated risk and banked on winning the event and making it harder for her team to fire her. Villumsen is contracted with the team until the end of next year.
"We've been discussing that," Tamayo said of a potential fine. "Our sponsors are looking for a bit of an apology from Linda but we have as a team internal policies as far as fines for athletes as being not sponsor correct but we'll deal with that internally and not publicly. She could be fined within the team."