The Prime Minister favours a parade to welcome home the All Whites "as champions".
Overnight New Zealand's World Cup dream ended after a 0-0 draw with Paraguay but leave the competition unbeaten, having drawn in all three of their group matches.
Prime Minister John Key has ruled out a holiday in their honour but told Radio New Zealand that a parade would be a good idea.
"It would be nice to see their result celebrated... they'll come back as champions," Mr Key said.
"They are a team that are going to come back to New Zealand as heroes, in my view. It was always going to be a Herculean task to get through; in the end they didn't quite make it on points but a result nevertheless that we can all be proud of."
Asked if team members may get more formal recognition Mr Key said the selection process for next year's honours had not started yet - "but there were one or two people you would have thought would at least be worthy of consideration".
A spokeswoman from his office said this morning that a parade was still just a "good idea" and there were no official plans.
Mr Key said no one expected a team ranked so low to perform so strongly.
"They threw everything at it. They were a side that was up against a very good side in Paraguay but equally they have been against Slovakia and Italy and they showed they are a team with a lot of courage, they believe in each other, they're disciplined.
"And at the end of the day if one was to look back on their campaign you would have to say it would have been the bravest of souls that would have predicted that they would get a draw in every game, that they would get a point in every game and that they would end the table ahead of Italy."
Like any fan Mr Key was still rueful about a refereeing decision in the game against Italy.
"In the end I think New Zealanders will look back on that game against Italy where, albeit for a penalty that really went against them, they would have beaten the 2006 world champions and even without that held out Italy to a draw when I don't think anyone in the world would have predicted they could have done that before they got to South Africa."
- NZPA
PM backs parade for All White 'champions'
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