Rumours have been put to rest about why disgraced Tour de France cyclist Lance Armstrong is in New Zealand.

He's here to film a "cautionary tale" for brewery giant Lion.

The brewery said it's going to be called 'The Consequence' and will look at how much one stands to lose when success is pursued at all costs.

Lion said it wants to highlight that actions have consequences - and couldn't think of anyone better to demonstrate that.

A Newstalk ZB caller earlier today said he'd been on a flight from Houston with Armstrong, who told him he was doing work for beer brand Steinlager.

Lance Armstrong is doing a public ride starting at Auckland's Mechanics Bay tomorrow morning.

This comes after speculation the disgraced Tour de France cyclist was in the country to appear in an advert.

Lion, which brews Steinlager, confirmed this afternoon that Armstrong "was in New Zealand with us".

Before word of the film, Advertising consultant Mike Hutcheson spoke with Larry Williams, saying the collaboration would have to make "something good out of something bad", otherwise it would be "a huge risk."