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Auckland Museum says it has had no official request regarding Sir Edmund Hillary's home and there was no way it could accept such a donation anyway.

Museum director Vanda Vitali said there was a casual inquiry about the possibility more than a month ago but nothing more had been heard from the parties involved.

"The museum owns no land and has no ability to accept the donation of a house," Dr Vitali said.

"The museum is proud and grateful to have been bequeathed by Sir Edmund and Lady June the valuable papers and objects from his life.

"Auckland Museum is the heart of his storied career and we plan on caring for this collection on behalf of the people of Auckland in perpetuity."

The Government yesterday said it was willing to look at paying for moving all or part of the Hillary house, now the new owner wanted 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 said he and Auckland estate agent Graham Wall were in discussions with Auckland Museum and mountaineer Graeme Dingle about what to do with the house, which was built in the 1950s.

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

Prime Minister John Key said he had taken the matter to Cabinet for consideration.

"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.