America's Cup 2021: Stars + Stripes looking to sail Team New Zealand's 'Te Aihe' in challenger series - report

American syndicate Stars + Stripes are reportedly hoping to use Team New Zealand's first boat so it can compete in the Prada Cup challenger series.

In a stunning development, the struggling US team – who have run out of time and money to build their own AC75 – are seeking permission from the America's Cup independent arbitration panel to use a boat built in another country and take over Team NZ's 'Te Aihe', Newshub reports.

However, Stars + Stripes will have to convince the panel and fellow challengers from Italy, Great Britain and America to receive an exemption to bend the rules, which forbid the use of a boat built in another country.

The Cup rookies out of the Long Beach Yacht Club in southern California previously bought a design package from Team NZ but financial struggles have left their boat only half built.

Mike Buckley and Taylor Canfield, co-founders of Stars and Stripes Team USA. Photo / Photosport

While Te Aihe is unlikely to be as competitive given the significant developments teams are making to their second generation AC75s, America's Cup historian Tom Ehman says an exemption would infuriate the other challengers and give Stars + Stripes vital insight into where they stand compared to the other three teams – Luna Rossa, American Magic and Ineos Team UK – without having to race them.

"This has never happened before," Ehman told Newshub. "It's outrageous.

"They'll be as mad as hell … Challengers betraying other challengers.

"I'm calling them Stars & Stripes Team NZ."

Team NZ would welcome another challenger, which would be a financial boost for the regatta and Auckland's viaduct.

But getting challengers and the arbitration panel to agree to an exemption will likely be difficult, with Stars + Stripes already missing several previous deadlines.

The US syndicate insist their challenge is still alive and last week released a video teasing their involvement.