Vaughan yesterday confirmed the venue would be considered for top-tier tests once the ground's planned expansion was complete.
"If there is the ability to create a capacity of between 5000 and 10,000, then top-flight teams visiting Dunedin would certainly be on the agenda," Vaughan said.
The ground's expansion is possible following approval to remove three bays from the former Dunedin Art Gallery.
The building, at the northern end of the ground, had been a stumbling block in plans to upgrade the boutique venue for the past four years, but resource consent was finally approved this week.
The partial demolition will create the room to lengthen the shortest boundary from 52m to 62m and increase the crowd capacity from about 3000 to 6500.
New Zealand has never played Australia in a test in Dunedin but the city has hosted five one-day internationals between the teams and a one-dayer between Australia and India.
Otago Cricket Association chief executive Ross Dykes greeted the news with enthusiasm.
The upgrade would position the ground as the premier test venue in the South Island, he said.
However, the expanded ground would not be large enough to host one-day internationals against the same class of opponent, but it could host games against lesser nations, including some 2015 world cup fixtures.
While the future looks rosy for the region's cricket fans, people will need to be patient, as the venue is expected to be out of action until mid-February.
"There is definitely some short-term pain for some long-term gain," Dykes said.
"But we knew this would be the case. It is not something that could be done over winter or not be disruptive to a cricket season.
" But we are fortunate that we have so many good grounds in the districts at which we can play."
Otago cricket would not have to re-apply for a New Zealand Cricket warrant of fitness for the ground, but it would have to undergo a trial before elite cricket could be staged at the ground, Vaughan said.
Dunedin City Council community life general manager Graham Hall said the community had three weeks to appeal the resource consent but he was not expecting any appeals.
