Premature babies are at risk of conditions such as cerebral palsy and brain injuries.
There is no proven treatment for intra-uterine growth restriction although women in whom it is diagnosed are told to rest, in the belief this will minimise the underlying problem of blood circulation in the placenta.
Trial leader Dr Katie Groom of Auckland University said: "If we can determine a therapy that enhances fetal growth, and we can therefore delay delivery, we will improve not only these babies' survival rates, but also reduce the many complications that follow and can lead to life-long disability or disease."
She said if sildenafil proved effective in the early-onset cases, "we plan to trial it in later-stage cases too, where it could be of benefit for many more at-risk babies and families and have a huge societal and financial effect on our population".
As well as its original use in treating male impotence, sildenafil is now also given to some pregnant women and newborns to treat a constricted blood flow in the lungs.
An investigator in the new trial is Professor Phil Baker, the director of Gravida, the National Centre for Growth and Development, who began testing the idea sildenafil could increase blood flow to the uterus and fetus in the late 1990s.
The trial will start recruiting patients in October and will be part of a network of studies in several countries. Findings are expected to be published in 2017.
Read more: Mother: I would take impotence drug