The New Zealand Red Cross says Dunedin's community approach to welcoming the Syrian refugees is proof we can take in more refugees.

The city was one of the cities that hosted the first lot of Syrians who arrived in New Zealand almost two months ago.

Now it's preparing for its next intake of Syrian ex-refugees, due to arrive later this week.

Yesterday, the government announced the refugee quota would rise from 750 to 1000, from 2018.

SEE ALSO: NZ to increase refugee quota to 1000

New Zealand Red Cross secretary general Tony Paine said 250 extra lives will be saved in the increase of quota, and that it's a positive step in the right direction.

However, he said we should look to increase that quota further.

"Given the high levels of community support we've seen in recent months, we do think New Zealand could and should do more."

"It has really been a significant outpouring in the community of support, like we've seen in Dunedin, and yes it's absolutely one of the reasons we say we can do more."

Christchurch is being named as a potential location to house the extra refugees coming into New Zealand.

Mr Paine said the Government will be looking for a new location.

"Clearly there are housing issues in Christchurch that needed to be worked through but I think that's one of the places government will be looking at."

He said Christchurch took refugees before the earthquakes, so it makes sense for the city to do so again.