The Ruapehu mayor says a deal is close to being settled on who will be taking over Ruapehu ski fields.

Ruapehu Alpine Lifts, which ran the Whakapapa and Turoa ski fields, owing millions of dollars.

Four bidders had been vying for the contracts to take over and Mayor Weston Kirton says government officials have picked the two they favoured to run each ski field separately.

He understands they are Pure Turoa and a company linked to businessmen Dave Mazey and Tom Elworthy to manage Whakapapa.

Weston says the community is excited about the developments, but they don't want to celebrate too soon, with negotiations still in progress.

"There's a few unknowns to be considered, but it certainly gives confidence that we're going to see a ski operation this year in some shape or form.

"It's been delayed, and it's been a worry some people have gone elsewhere for skiing. The main thing is from our perspective is that we see a ski season, it's such a key part of our economy," Kirton said.

In a statement, the government would not confirm who it has chosen and says negotiations are continuing.

The Ministry of Business, Innovation and Employment has been approached for comment.

-RNZ.