As police step up their inquiry into an alleged assault by Veitch on his former partner, Kristin Dunne-Powell in 2006, the source told NZPA the scandal had rocked the organisation.
He said many within TVNZ felt the damage was significant and there was no way Veitch could return to his job as a sports presenter with One News and host of the popular sports quiz Game of Two Halves.
Last week he was dropped from the TVNZ team to cover the Beijing Olympics.
Veitch has also been suspended as host of Radio Sport's breakfast show pending a investigation into the incident.
Last week in a carefully scripted statement, Veitch admitted he "lashed out" at his former partner Ms Dunne-Powell at his Auckland home last year.
The attack put her in hospital with her back broken in four places. She was in a wheelchair for some time, off work for several months and was later forced to quit her job as a marketing executive with Vodafone. Veitch was also alleged to have paid her $170,000 in hush money and compensation.
Ms Dunne-Powell did not lay a formal complaint with police and she and Veitch were alleged to have come up with a story that she got her injuries from a fall on the stairs.
Police confirmed yesterday that three detectives were now working on the assault claims.
Spokesman Kev Loughlin said yesterday that, at this point, police were confident that was enough.
He refused to say whether police had yet spoken to either Veitch or Ms Dunne-Powell.
The scandal has put the heat on TVNZ's top executives as the Government launched an investigation into how it had handled the affair.
TVNZ and The Radio Network, which runs Radio Sport, have admitted senior managers had known since last year of Veitch's problems with his former partner.
TVNZ chairman Sir John Anderson said he was standing by key staff.
He said only a police investigation would get to the bottom of the allegations.
