"This will be a good opportunity for choice in Christian education in Rotorua."
Mr Hood, speaking on behalf of both schools, said the move would be positive for Rotorua, Chapman College and Bethlehem College.
"There is no guarantee this will be granted so we are taking it one step at a time, but it is part of our philosophy to help spread Christian education throughout New Zealand."
He said Chapman College had held one meeting with parents and the proposal was well received.
But John Paul College principal Patrick Walsh said he opposed Bethlehem College's first application and would oppose this one.
"There is enough diversity in Rotorua's education sector to satisfy need. Rather than give Chapman College state integration, they should increase our roll cap, the network is already under-utilised.
"If the proposal is allowed it will set a precedent for any school to set up a satellite campus in Rotorua which is not helpful to the sector. There is not only potential to lose students at all Rotorua schools, but there will be increased competition."
Ministry of Education's head of sector enablement and support, Katrina Casey, said the Christian Education Trust and Bethlehem College Ltd were considering ways to support Chapman College "to allow a non-denominational Christian education provision option for Rotorua families".
"Those two bodies met with us recently to investigate possible options for achieving this.
"We are also aware that one possibility the proprietors are investigating is applying for an increase in the Bethlehem College maximum roll to enable Chapman College to become a Rotorua satellite of Bethlehem College.
"We are still in early discussions with these bodies and no decisions have been made.
"Whenever the ministry receives an application for an increase in the maximum roll of an integrated school we must consider a range of factors, including demographic trends in the area concerned, capacity of the current school network, potential impact on the network of schools and diversity in the range of education provision."