The part of the old Dunedin Art Gallery at Logan Park which is to be removed houses the administration offices of the Highlanders, and is also used later in the year by the Otago team.
It includes offices, meeting rooms for the team and rooms for video analysis.
Reid said until the side's requirements were met then where they were to be re-located would remain an issue.
He was supportive of what the council was trying to do with the University Oval but a solution needed to be found to the Highlanders' problem.
The new Forsyth Barr Stadium was a possible home for the Highlanders but the franchise needed a temporary home until the stadium was completed.
The franchise also needed to know the costings of being based at the new stadium before it made any sort of commitment.
The Highlanders and the Otago union had been part of the University Oval working party, but Reid was not aware a press conference was held yesterday about the proposal to remove part of the old art gallery.
"But they are well aware of our issues."
The Highlanders used the gymnasium at the gallery which was also used by athletes at the Academy of Sport but the gymnasium would stay.
When the Highlanders first moved to Logan Park, two old classrooms were moved there to house the coaches and other staff.
But Reid said it would be inappropriate for a professional sporting team to be housed in old prefab classrooms.
