The New Zealand Rugby Union announced on Wednesday the new domestic competition framework for next year.
It will include a 10-team premier division, a six-team division one competition, and a 10-team Heartland Championship.
The teams to be axed from the current 14-team premier division will not be announced until November, with the four to drop to be assessed under criteria including performance, player numbers, player development and financial creditability.
North Otago Rugby Football Union chief executive Colin Jackson said the union had already talked about going up to division one and would be keen to make the leap from the Heartland Championship.
North Otago had done it before by competing well in the old second division, and he could see no difference this time around.
He would have to see the financial criteria for the new division one but felt they would be a mix between amateur and professional.
"We would cut our cloth to what we can afford. We just have to wait and see what the financial implications are for the union," he said.
He expected loan players would be allowed and felt the relationship between North Otago and Otago over loan players had worked well for both unions over the past few years.
Being a level below the premier division was good for Highlanders rugby, as players could either play for Otago or Southland at the top level, or come and play at North Otago at the next level down, Jackson said.
He said six teams did not seem a lot, but the number made for a "full enough" programme.
King Country has also signalled it is keen to go up to division one, while other teams such as Wanganui, Mid Canterbury and Poverty Bay may also be candidates.
