That would "not necessarily" be a case of New Zealanders becoming "tenants in their own land", he said.

In relation to the Crafar sales, Labour leader David Shearer has recalled Key's earlier comments that he was concerned New Zealanders could become "tenants in their own land" and that is why the Government was looking at overseas investment rules around land sales to foreigners.

Government ministers are expected to reveal tomorrow their decision on whether China-based Shanghai-Pengxin can but the farms, after they earlier received a recommendation from the Overseas Investment Office.

"It's less likely to be today and more likely to be tomorrow but these things can change. I don't think they've made a final decision but they're in the final throes of making that decision some time today and probably communicating it tomorrow," Key said.

He "had a feeling of what might happen".

"The Government is not in one sense the arbiter of the decision about yes or no for foreign ownership of the existing Crafar Farms - that is a recommendation from the Overseas Investment Office. What the Government's role is to determine whether the Overseas Investment Office followed the law properly," Key said.

Opposition to the sale by Shearer was "a great political statement to make" but may not be legally correct if the OIO had followed the law. Neither Labour, nor any other major political party had campaigned on a total ban of the sale of farmland to foreigners, Key said.

"What ministers are looking at is: Does the bid by this Chinese entity meet the regulations. If it does, they have no grounds to turn it down because if they do turn it down, then they would be subject to judicial review and they would almost certainly lose."

The Government had spent "a long time tightening up the law" around foreign ownership of land.