Asked whether Football Federation Australia, who were represented at the meeting in Wellington, were keen for the Phoenix to remain in the A-League, McKavanagh said that was very much the case.
"Without doubt the FFA want a New Zealand team in the league," he said. "They are very respectful of what Terry Serepisos has done for the club and see him as one of the more progressive owners in the league.
"New Zealand Football's line remains very much as it has been from the outset. We see real value in having a professional team in New Zealand and playing in the A-League but that is the extent of our involvement. It is a private team run by private individuals. We just hope the whole matter can be sorted out."
McKavanagh said they are keen for Herbert to continue with the All Whites and have a role with the Olympic team.
"At this stage we see the Olympic campaign being of two distinct phases," he said. "Ricki will have an involvement especially in setting the technical direction of the team.
"But, we have to remember that we still have to qualify through Oceania and that won't be easy, especially as we are likely to have to do that with a largely home-based group of players. Should those players get us through in Fiji in March, it is likely only a handful from that team would go on to the London Olympics."
Players with All Whites experience including Marco Rojas, Kosta Barbarouses, Chris Wood, Winston Reid, Tommy Smith, Craig Henderson and Jake Gleeson will almost certainly bypass the qualification but would come into the final 18-strong Olympic squad. Add in the allowable three over-age players and there will be little room for home-based players.
Brian Turner and Raul Blanco have met the ASB Premiership franchises this week to set out what could be involved in preparing for the Olympic qualifiers with McKavanagh admitting there might be changes to the premiership schedule to accommodate the team and their preparation.