Economic Development Minister Gerry Brownlee supports building a road from Haast to Hollyford Valley but says the Government has no immediate plans to do so.
Mr Brownlee recently met with the Westland and Southland district councils and Scenic Hotel Group owner Earl Hagaman, who is backer of the route.
"I'm personally supportive of it but it's not something that the Government is actually considering at the present time," Mr Brownlee said.
"It's something that sits out there as a possibility, it's got good tourism implications, there are a number of development proposals down there for quicker access to Milford.
"I think having a loop right around the bottom of the South Island up the West Coast would be very useful. It's very long term, there's no commitment at this stage and this is something that's been on the books since the start of last century."
Mr Brownlee said difficult financial conditions meant the project was not "particularly attractive" but the longer term benefits would be considerable.
