Tourism operators Skyline Enterprises and Ngai Tahu Holdings are investigating the viability of a gondola transport link between Queenstown and Milford Sound.
If the project is feasible it would cut the return travel time between the two centres by three hours.
The development will involve access to the mouth of the Greenstone Gorge and up the Caples Valley.
Travellers would then board an aerial cableway system heading up the valley, over the Caples Saddle and across the Greenstone Valley to end next to the Milford-Te Anau Rd.
It would be the longest of its type in the world at 12.6km.
The project is expected to cost $80 million.
Gondola proposed for Queenstown to Milford Sound
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