An agreement has been struck on the Auckland waterfront venue for the 36th America’s Cup.

The Government, Auckland Council and Emirates Team New Zealand have reached an agreement in principle for the location of Wynyard-Hobson at Hobson Wharf.

Economic Development Minister David Parker says it significantly reduces the intrusion into the harbour, and the cost to Auckland ratepayers will be more than 50 million dollars less than if they had gone with the other options.

The signed agreement is subject to approval by the Auckland Council Governing Body, which will meet on Thursday.

Political editor Barry Soper says it's good news for those that want the cup in Auckland, although the decision still has to be signed off at an Auckland Council meeting on Thursday.

"It would seem that all the i's have been dotted and the t's crossed because there is a general agreement between the people who have to agree to this."