Middle Eastern airline Emirates has signed a multi-million-dollar sponsorship deal with Team New Zealand, apparently securing our participation in the 2007 America's Cup regatta in Spain.

The contract, understood to be for as much as $NZ50 million, was signed in Dubai three-and-a-half weeks ago.

Team NZ boss Grant Dalton told New Zealand media earlier this month he was "not far" from signing sponsorship deals for nearly $100 million of the total $150 million needed to mount a Cup challenge.

Dalton did not respond yesterday to calls made via his PR man, Warren Douglas. Nor was Emirates' New Zealand country manager Chris Lethbridge contactable on Tuesday.

Emirates PR woman Pamela Wong said "as far as New Zealand is concerned, we have had no contact [from Emirates headquarters] and we know of nothing that has been signed."

Earlier this month Daily Telegraph sports writer, Tim Jeffery, tipped a Middle Eastern airline would be Team NZ's title sponsor. Team NZ failed to respond to this speculation.

It is understood some high-profile Europeans are also keen to kick in funds to support Team NZ and Emirates will make an announcement about the sponsorship deal within weeks.

The carrier has taken an increasing interest in New Zealand recently. It started flying out of Auckland to the Middle East via Sydney last August and yesterday announced special launch fares to Melbourne, Dubai and Europe for services out of Christchurch from 1 July.

Emirates was a major sponsor and official carrier for the 2004 Holden NZ Open Golf Tournament in January and is a sponsor of the NZ Barbarians rugby team.

Last May the government pledged up to $33.75 million as a marketing partner for Team NZ's Cup challenge, but with strings attached. America's Cup Minister Trevor Mallard said the final level of contribution would depend on Team NZ's ability to raise substantial funding from the private sector as well as an assessment of the potential economic benefits for leveraging off the races. There were other undisclosed commercially sensitive conditions.

Since launching in 1985, Emirates' sponsorship has expanded from local events such as the Dubai World Cup (the richest horse race in the world), the PGA desert golf classic and the Dubai Shopping Festival to global events and entities such as international cricket and the Sydney Symphony Orchestra. It paid $US30 million recently to be the key sponsor at the next FIFA Soccer World Cup in 2006.