Otago announced yesterday the signing of Western Force midfield back Josh Tatupu and Wellington outside back for the 2010 season.
Otago coach Phil Mooney said he had done some research into both players and felt they could contribute to the Otago team.
He said it was vital to have players competing for positions.
"When you have competition within the team it should bring out the best of players. When players are not being challenged they get comfortable and do not put on their optimal performance," Mooney said.
He made his debut for the Western Force that year, and has made 12 appearances for the side, being mainly used as a player off the bench.
He was born in Christchurch and still has family in the area.
Hill (22) is a winger and was a member of the New Zealand Colts side which won the world title in 2008.
He played for Wellington in last year's provincial championships but such is the depth of outside backs in the capital, he had decided to move south.
He has an impressive pedigree, having played for New Zealand schools for two years. Hill has family in the South.
Mooney said both players would arrive in Dunedin next month and would play club rugby. He said at the moment they were the only signings he was looking at.
Prop Ben Nolan, who has played 24 games for the province, has been signed by the union and is returning from Australia.
The new players will increase the depth in the Otago backline, who have lost Karne Hesketh, who has gone to Japan, and Brett Mather, who has moved to Bay of Plenty.
Tatupu will be up against the likes of Andrew Parata and Ryan Shortland for a spot in the midfield, while Hill, who can also play fullback, will face competition for places from Fetu'u Vainikolo and Jeremy Cave.
Union chairman Wayne Graham said the board was working hard to secure funds to attract players to the province.
A fundraising committee had been formed at board level, and an Otago rugby first XV scheme had been set up as a new sponsorship venture.
The initiative allows individuals and businesses to contribute to Otago rugby with funds going directly to player retention and development.
Graham said although the scheme had only just started it was already proving popular.
The full Otago squad will be announced in June.
The ITM Cup kicks off at the end of July and will be cut throat with the top seven teams going through to the premiership and the bottom seven playing in the championships the following year.