The subsidence at Abbotsford’s Miller Park was noticed by Green Island Rugby Football Club members on Tuesday afternoon.
Sixty-nine houses in the area were destroyed by a landslip in August 1979.
Dunedin City Council parks maintenance team leader Nick Wells said the area around the affected location had been fenced off.
"A geotech engineer has undertaken a brief site inspection of the area and will undertake a further detailed inspection.
"Until we receive a report from the geotechnical engineers we are unable to comment further," Mr Wells said.
Club president Brendon Hollows said his initial impression was that the subsidence did not look too bad.
Recent heavy rainfall was likely to be a factor, but the club was waiting to hear more, Mr Hollows said.
"It is just a small area, so hopefully it is just an isolated incident."
Although the 1979 landslip began further up the hill, he believed the spot where the subsidence occurred was landscaped from the impact site, Mr Hollows said.
"Obviously, it’s got underlying issues, the whole land there."
Sport was scheduled to take place at the park tomorrow, he said.
"I imagine as soon as they have an assessment they’ll give us a heads-up as to what it’s looking like."
