A Costco megastore in Christchurch is a step closer after the government gave the United States-based company the go-ahead to lodge a fast-track application.

National Minister Tama Potaka said Costco's referral application for the planned development near Christchruch Airport has been approved.

"A referral application is a request for the Minister to consider whether a project should enter the Fast-track approvals process," he said in a statement.

The proposed Costco would be built between Avonhead Road and Memorial Avenue.

Costco would now need to submit a substantive application and provide additional information, Potaka said.

Christchurch Mayor Phil Mauger told 1News the fast-track application "only just popped out of the woodwork in the last week or so", but said it was "in the system".

Mauger said there would need to be some "serious traffic lights or traffic management" so people could get in and out easily.

He said a Costco would be "greatly received" by the city, calling the potential development "another cog in the wheel of what makes Christchurch as good as it is".

"It's all work for everyone who's stacking shelves, trucks, carting the stuff here. It'll be good." Mauger told 1News.

On Wednesday Christchurch City Council Waimairi Ward councillor Sam MacDonald said the council was asked to give feedback on a Costco fast-track application.

The only Costco store in New Zealand currently is at Auckland's Westgate. It opened three years ago, but a second store is planned for Drury in South Auckland.

-RNZ and Allied Media