Team NZ has refuted a claim that a successful challenge could result in a New Zealand defence being staged in Dubai.

"The team's position has always been that an America's Cup defence, if we are in the fortunate position of mounting one, will be held in New Zealand", said managing director Grant Dalton.

"We are a Kiwi challenge. New Zealanders rightly expect a defence to be held in New Zealand. "We have a very strong relationship with Emirates as naming sponsor and we hope that will continue. We have never discussed holding a possible defence in Dubai."

"I have read what was report in Dubai and what was actually said. It looks to me that a quote musing about the desirability of Dubai as a future venue for the America's Cup has been hardened to read as though Emirates would want a defence in Dubai".

Dalton said that the success of the series of pre-regattas leading up to this year's series would make Dubai an obvious venue for a big pre-regatta whoever won the Cup.

Prime Minister Helen Clark, who is in Valencia for the start of the Louis Vuitton Cup challenger elimination series, said there is no question where a New Zealand defence would be held.

She said a contract between the Government, which is also a sponsor, and Team NZ stipulates that the defence would be held in New Zealand if they win.

"Any comments I made with regard to the next America's Cup were related to speculation", said Emirates media spokesman Boutros Boutros, who was quoted yesterday. "I was asked, if the opportunity should arise, would Emirates like to see Dubai host the next America's Cup?"

"I said we would certainly be interested as Dubai has all the necessary infrastructure. This will need to be discussed with the team and various other stakeholders".

"We have not had any talks on the subject with ETNZ. Quite right, their focus right now is on the Challenger series in Valencia and winning the right to challenge.".