One transport planner is looking into the feasibility of a fixed link between New Zealand's two islands.

KiwiRail are officially cancelling an overseas contract for building more mega-ferries, after the Government declined to foot the bill.

Nicolas Reid, the Principal Public Transport Planner for MRCagney, says there are other options available to cross the Cook Strait.

"There's options around the existing ferries and expanding those ferries, and also moving to a fixed link such as a bridge or a tunnel."

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