"And I just wonder whether New Zealanders would believe they'd get much out of that.
"I think if you put it to the test today, I suspect your polls would show strong and probably post this visit even stronger support for the royal family."
He said he planned to discuss debate around changing the New Zealand flag with Prince William at a formal meeting but expected his reaction would be that it was up to New Zealanders whether to keep or change the country's official flag.
"They're always extremely comfortable with whatever decision New Zealand as a country and New Zealanders make."
Mr Key said the country could remain a constitutional monarchy while changing the flag.
"I think in modern-day New Zealand, as a small country striving on a global and world stage, we run independent foreign policy, we're far more engaged with so many more countries than we ever were before and to me, something like the silver fern - maybe it's got the Southern Cross and who knows what colours - whatever the make up of the flag, it's likely to be more reflective of the indigenous characteristics of New Zealand as opposed to the Union Jack.
"I think it's quite consistent to have a new flag, but to say: 'We want to remain a constitutional monarchy'."