Updated 7.50pm: Team New Zealand could be set for a battle over Auckland hosting an America's Cup qualifying regatta.

America's Cup Commercial Commissioner Harvey Schiller has notified Team New Zealand that Auckland won't be getting a regatta in 2017.

However it's told NZME. that it has an agreement, signed by Mr Schiller himself, that there would be a qualifier series in Auckland.

Team New Zealand has muddied the waters, claiming they've been given two options for the America's Cup.

Team head Grant Dalton says the teams were presented with two options last week.

The first is to race the smaller AC45 yachts, without coming to Auckland.

"Or, stay with the 62 and come to Auckland. It's an easy decision for us."

Grant Dalton says they support Luna Rossa's position to stay with the AC62, and come to Auckland.

Government funding of Team New Zealand is dependent on local involvement in the next regatta.