Dunedin has been picked as a new settlement destination for refugees.

The city is now the sixth resettlement option, alongside Auckland, Waikato, Manawatu, Wellington and Nelson.

Immigration New Zealand's Steve McGill said an additional location was needed after the Government's decision to welcome 750 Syrian refugees, over the next two and a half years.

He said Dunedin was selected for a number of reasons including having strong services and being well connected, with a number of government agencies having a presence.