The track - a cover of Driftwood written by Chris Knox and from his band the Nothing's 2008 album Warm Gun - was recorded in Dunedin last week and is destined to be part of a tribute album to Knox, who had a stroke in June.
Described as a pioneer of the Dunedin sound, Knox was the first to record young Dunedin bands for the fledgling label Flying Nun, including records by the Clean, the Chills and the Verlaines.
The tribute album, which will be called Stroke, will also feature Knox covers by artists including David Kilgour, the Mint Chicks, Lou Barlow, Martin Phillipps, Jay Reatard, Yo La Tengo, Lambchop, Shayne Carter, Pumice, Alec Bathgate, Will Oldham, Jeff Mangum and Bill Callahan.
All songs are being donated and proceeds will go to the Knox family.
A release date has not yet been set.
Producer Graeme Downes said musicians were contributing willingly to the album because Knox was a "total legend" in music circles.
"He's been around a long time and produced a lot of music. There'd hardly be a musician around who hasn't slept on his couch at some point or other."
He hoped Knox would enjoy hearing the Verlaines' version of Driftwood.
A July statement said Knox's stroke had affected the speech and language centres of his brain and the right side of his body.
"He's got a long road [to recovery] ahead of him," Downes said.
