A Wellington business leader is disappointed discussions around the capital's new movie museum are being aired in public.

Sir Peter Jackson is working with the Wellington City Council to build the $150 million museum and conference centre across the road from Te Papa.

But an angry letter from the famous director to the council has been leaked to media, showing negotiations have turned sour.

Wellington Chamber of Commerce chief executive John Milford said it was unfortunate the conflict had become public.

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"From what I see, this is a conversation that happens between a landlord and a tenant and probably should be discussed in private rather than through the public forum.

"One party is obviously not happy with the other party, so I presume they've decided they should make it public."

But Milford said it didn't surprise him to see points that still need negotiating.

"This is a commercial contract, with the council making an investment on behalf of ratepayers for the future.

"So on that basis there is going to be negotiation backwards and forwards.

"There's always two sides to any conversation and this is a landlord/tenant conversation around agreeing terms for a relationship that is going to go for a number of years."

Milford said the key for the city and ratepayers is that they get the very best outcome.

And he said this conversation is not just about the movie museum.

"We are desperately missing having a conference centre at the moment because of the Town Hall being out of commission.

"And with Christchurch and Auckland expanding their facilities, we need to secure the conference facility as well - not just the movie museum."

The Wellington City Council has refused to comment on reports Sir Peter Jackson is threatening to pull the plug on the capital's $150 million Movie Museum.

Councillors have described Sir Peter's message a "divorce letter", according to Fairfax.