Wellington City Council and Wellington Airport are planning to jointly fund a $2 million resource consent application to extend the runway.
The 300-metre extension would cost about $300 million and involve reclaiming land in Evans Bay in Wellington Harbour.
Wellington mayor Celia Wade-Brown said on Thursday the extension will create about 300 construction jobs and add about $43 million to the region's economy each year when complete.
Ms Wade-Brown says next week councillors will be asked to approve a $1 million contribution to the application process funded from under-spending in the council's budget.
She says she hopes the Government, councils and businesses will contribute to the construction cost.
Wellington Airport says the extension will enable it to receive long-haul, twin-isle jets probably from Asian destinations.