The Otago Daily Times understands New Zealand Golf, guided by tournament promoter Bob Tuohy and the PGA of Australia, will confirm the move later this month.
It is believed the Christchurch City Council will play a role in securing the tournament for Clearwater, the exclusive member-owned club on the outskirts of the city, for at least one year.
The Open is no stranger to relocation - it was always intended to be a tournament that moved around the country - but losing hosting rights will be a bitter pill for The Hills owner Michael Hill, whose venue and sponsorship money played significant roles in resuscitating the struggling event.
It is understood Mr Tuohy prefers Clearwater partly because he can organise a more efficient tournament there alongside the New Zealand Women's Open he runs at neighbouring Pegasus.
The Otago Daily Times also understands the relationship between Mr Tuohy and Mr Hill has become strained.
Mr Hill has spoken of his desire to have more control over the Open if it is held at The Hills again, but Mr Tuohy - whose group, Tuohy Associates, cut a deal with New Zealand Golf three years ago to assume the financial risk for the tournament - is giving no ground.
"Michael has made his position clear, but look at the original contract. New Zealand Golf asked us to promote and take the entire financial risk for the tournament," Mr Tuohy said from South Australia yesterday.
"Michael might want more control but it's a matter of whether his club has the ability to manage and market a tournament like the New Zealand Open.
"I doubt the people at The Hills actually have the skills in those areas."
He acknowledged he had "had discussions" with the Christchurch council, which had been "very supportive".
The Hills general manager Sam Gent said the course's owner still believed there was "a chance" the Open would stay in Arrowtown.
There was no breakdown in the relationship between Mr Hill and Mr Tuohy "as far as we're concerned", and Ms Gent said the course was proud of its role in hosting three Opens.
"I think the success and input by Michael speaks for itself. The Hills does not purport to be a promoter, just a catalyst and fantastic venue."
The Hills has unveiled a "Save the Open" campaign.
