Chief executive Selwyn Maister says a new Sparc proposal is no threat to the Dunedin base of the New Zealand Academy of Sport South Island (ASI).
He says the decision to form a single administrative arm to administer high-performance sport in New Zealand will not harm Dunedin's status as a centre for elite sport.
Sparc high performance chairman Paul Collins has announced an agreement in principle to form a single entity through a merger of the two New Zealand Academies of Sport and Sparc's high-performance unit.
The new entity will have strong links to the New Zealand Olympic Committee and national sports organisations.
Maister, the acting chief executive of the ASI, was confident about Dunedin's future when contacted yesterday.
"Sparc has recently made a substantial investment to the training centres at QE2 in Christchurch and the Forsyth Barr Stadium in Dunedin," Maister said.
"This is a solid vote of confidence in the South."
He said there was no indication that the role of the academy in Dunedin would change under the new arrangement.
"There will be carded athletes living around the country who must be serviced," Maister said.
He said the only thing announced was the intention to merge at an administration level at the top.
The new plan would bring all the different agencies together in a more co-ordinated fashion.
The ASI's Dunedin base has the approval of Sparc and will be based at Forsyth Barr Stadium by the end of the year.
"It is business as usual. We are heading towards the London Olympics in 2012," Maister said.
Forsyth Barr Stadium will put Dunedin in a favourable position to play a central part under the new system.
A review of New Zealand's high performance structure was announced by the Prime Minister last year, as part of a major investment in, and reshaping of, high-performance sport, aimed at making New Zealand one of the most successful sporting nations in the world.
Sparc's high performance board was charged with leading the review and preliminary work has been under way since then.
A working group has been set up to talk to athletes, coaches, national sports organisations and staff at the academies and Sparc, to work through the details of how the new high performance unit should be established.
Collins said the transition to a new structure would be handled carefully so it did not disrupt athletes preparing for the London Olympics and other major events.