The Government is willing to look at paying for moving all or part of the late Sir Edmund Hillary's house, now the new owner wants to get rid of it and extend his garden.

Sky Television co-founder Terry Jarvis has confirmed he paid $1.9 million for the Remuera home when it was auctioned in March.

He and Auckland agent Graham Wall are in discussions with Auckland Museum and mountaineer Graeme Dingle about what to do with the 1950s house on the property.

Discussions involve potentially relocating the house, although that is likely to be logistically difficult and expensive.

Mr Key said he had taken the matter to Cabinet for consideration.

"It is fair to say that within certain parameters we are not opposed to looking at some way of preserving the house or parts of the house," Mr Key said.

"I think the Government would prefer if we can to retain at least parts of it. I think there is a cultural and heritage aspect which would be worthy of some government expenditure, but it would be quite small, less than $100,000."

Mr Jarvis said the house did not have many redeeming features worth saving, except the study where Sir Ed did most of his work and a couple of other small areas.

He said he had hoped to keep the purchase private, but had bought the home as he was nervous about the potential effect on his property of someone else buying it and building on the site.

While the house could face demolition, there were no plans to develop the section beyond extending his own property.

"I think we will turn it into a garden probably. I have no plans to subdivide it or do anything like that."

- NZPA