"The indications are that between six and eight teams will take part," rugby league southern zone general manager Steve Martin said yesterday.
"I was blown away by the interest and support we have had."
Clubs at Kia Toa and Otago University have been re-established and other teams are being formed.
Martin called a meeting for people interested in the reintroduction of league in Dunedin and found there was enough support to push ahead with plans for the competition.
"I'm amazed to see the interest in starting up a rugby league competition in Otago again," Martin said.
The Otago competition was scrapped early in 2008 and there has not been any league played in the province for the past two years.
A small management committee has been formed to administer the game and this includes Martin and Sport Otago chief executive John Brimble.
The other places on the committee will be filled with people with a rugby league background.
"Our plan is to develop grassroots rugby league and give our players a pathway to the senior and professional levels of the game," Martin said.
There are plans to stage a 12-week, round-robin competition next year.
The original plan was to play games on Sunday to avoid clashes with other codes. But this may have to be adjusted.
"We initially thought we would play games on Sunday but have not made any firm decision on this," Martin said.
"A number of our players have church commitments. We will consult widely before making any firm decision."
There are also plans to establish a schools competition next year and to develop a sound refereeing base.
"It is still early days," Martin said.
"We are keen to reignite interest for next year when we will have a well structured competition."
Martin, who coached the Otago first division rugby team from 2006 to 2009 and was the assistant coach of the Highlanders for two years, was appointed to the position after New Zealand Rugby League decided to make significant structural changes to the way the sport is organised.