Queenstown Lakes Mayor Clive Geddes declined to comment until an official announcement had been made, and Destination Queenstown chief executive Tony Everitt said he did not want to comment during "a delicate stage in the negotiations".
Edgar said moving the tournament from the Arrowtown course would be "a tragedy for Queenstown and for New Zealand Golf".
"Firstly, Queenstown is the most perfect venue to host people and attract both a strong international field, but also ... a strong lot of spectators.
"Secondly, it's an outstanding course, and the third thing is ... I thought New Zealand Golf recognised the stabilisation of having the Open at the same venue."
Edgar said Hill spoke at a Chamber of Commerce luncheon in Queenstown last Friday about the need for community support and funding to help with an estimated $500,000 shortfall ahead of the next Open.
There was strong support to help Hill with funding, if needed, Edgar said.
The Otago Daily Times yesterday reported the relationship between Hill and Open promoter Bob Tuohy had become strained - and Edgar said he could understand that.
"Michael, I understand, was concerned about the transparency and believes that they [The Hills] and New Zealand Golf could run it on a more cost-effective basis.
"I could understand that, but clearly, I imagine, Bob Tuohy is very keen to keep the franchise."
Arrowtown Village Association chairman Jim Feehly agreed with Edgar and said he would be extremely disappointed if the Open did not stay at The Hills.
"It would be a great loss to the district. It would be a great shame if it was allowed to go elsewhere."
The district would miss out on a lot of money if it lost the tournament.
"A lot of sporting clubs support the Open for monetary recompense. For example, the local bowling club did all the parking in return for a donation from Michael Hill. They will lose out."
Jacks Point golf director John Griffin said losing the Open would have an impact on every golf course in the Wakatipu basin, throughout Central Otago and the wider area.
