At the moment Scotland is divided into four areas but the Scottish government is consulting on creating a fifth.
It would include Dumfries and Galloway, the Borders, South Lanarkshire and East, South and North Ayrshire.
A report to councillors in the Borders has advised them to support the plan as it could bring extra funding.
European statisticians currently divide Scotland into four large regions - Eastern, North Eastern and South Western Scotland plus Highlands and Islands - to inform regional policy development and determine regional funding.
The Scottish government has now proposed creating the fifth region.
Scottish Borders Council has been told the move has the potential to see "increased European funding being made available to the Scottish Borders in the longer term".
It has also been advised of the "reputational risk" if it does not lobby as effectively as possible for additional European funding.
The report concluded that it was important for the proposal to be reinforced "in order for the potential benefits of these changes to be realised".
Scottish Borders Council is being advised to back proposals to create a new European funding administrative region for southern Scotland.