Chairman Ron Palenski told the Otago Daily Times yesterday the ORFU preferred a reduced first division.
"In the long run, New Zealand does not have a big enough population or enough rugby players to justify 14 teams," Palenski said.
Otago would prefer between eight and 12 teams in the first division.
"But we have to balance our own interests with the interests of the game as a whole in New Zealand," he said.
"If the game suffers as a whole, all the parts suffer as well."
Palenski stressed the need to have certainty about the form of competitions available.
"We have had the `will we or won't we?' approach long enough," he said.
"Rugby deserves better."
He said the decision to stay with 14 teams would give certainty for next year.
"But none at all beyond that," he said.
"It is difficult for the provincial unions to plan and operate if they don't know what the future plans of the New Zealand Rugby Union are."
He expected there would be a truncated Air New Zealand Cup in 2011 because of the World Cup.
ORFU chief executive Richard Reid had some sympathy for the NZRU as it faced the prospect of legal action if it went ahead with the plan to cull four teams.
"I can see the pressure they're under as part of the collective bargaining process," Reid said from Wellington.
"It's a bit disappointing but it is understandable. They had to make a decision and they were forced into a corner."
Reid said Otago had consistently pushed for a reduced premier division.
In the union's submissions it recommended a 12-team competition.
The issue now was how the provincial unions could agree on the future shape of the national championship.
"Collectively, the provincial unions struggle to reach a consensus. We had agreed on a set of principles quite some time ago.
"Based on those, the NZRU devised a competition, and then some of the provincial unions decided they didn't like it."
Meanwhile, Reid said the panel interviewing contenders for the Otago coaching job hoped to make a recommendation to the ORFU board on Monday night.
Otago Country coach David Latta, Alhambra-Union coach Mike Moeahu, former Reds coach Phil Mooney and former Bay of Plenty coach Greg Smith are believed to have been on the shortlist.
