The team would be made up of players from Fiji, Samoa and Tonga, and would play in the Super Rugby competition.
Newshub has learned both New Zealand Rugby (NZR) and the Government have worked on the proposal, meaning a united 'Pacific Force' is now close to reality.
The feasibility study was carried out by Jeremy Curragh, a respected rugby commercial operative, and cost the taxpayer $80,000.
Under the plan, the team would be based in Suva, as Fiji is the biggest country. It would also play some 'home' games in Samoa, Tonga, Auckland and Sydney.