A yachting commentator isn't surprised by Team New Zealand's decision to strengthen nationality rules in the America's Cup.

The syndicated won't announce the full rules for its next America's Cup defence until September.

But it's revealed competing teams will be required to recruit team members and build most of their equipment in their home country.

Yachting commentator Peter Lester said that's exactly what he expected Team New Zealand to do.

"Reminds me a hell of a lot of the protocol of 2000 under the late Peter Blake. Those two components were to cornerstone pieces of the protocol."

Meanwhile it might seem like the obvious choice, but Auckland still hasn't got hosting rights for the next America's Cup in the bag.

Team New Zealand is considering Auckland's Hauraki Gulf as the venue for the cup defence in early 2021.

But Lester said the syndicate still seems to be negotiating a hosting deal and nothing is set in stone.

"They certainly haven't come out and said that Auckland will be the venue so that would indicate to me that there is still a dialogue going on whether it's central government and local government."

The team hasn't confirmed the venue, date and yacht type, but it's likely to be in Auckland in early 2021.