It proposed setting up a community of health professional teachers and researchers in rural areas, and use virtual technology to educate students and undertake research in rural communities.
"The University of Otago remains committed to the collaborative proposal for a National Interprofessional School of Rural Health," Prof Crampton said.
"The difficulties of attracting and retaining rural health professionals are well known and we are committed to working collaboratively with our partners, including rural communities, to address these issues to help improve New Zealand's health system," he said.
In recent years rural practices have struggled to attract staff, with resulting drops in health statistics in country areas.
Last week Dr Clark said he had asked the Ministry of Health to work on projects to tackle access to health services in rural areas.
"By itself, just training more undergraduate doctors is not the answer," Dr Clark said.
"We need a more comprehensive approach to attract, support and sustain the health professionals that care for rural people."