Jacinda Ardern to lead New Zealand's coalition government

NZ First leader Winston Peters arrives at Wellington airport on Monday morning to meet with his board as coalition talks

According to Ardern, the Labor will convene on Friday before a three-day long weekend to decide ministerial portfolios and hold a swearing-in ceremony next week.

Jacinda Ardern is the new prime minister-elect of New Zealand after Winston Peters announced that his New Zealand First party would enter into a coalition deal.

"The people of this country did want change", Peters told a press conference on Thursday afternoon. "We said we could do this, we will do this".

"The Greens and New Zealand First despise each other, and Winston Peters has caused chaos in every government he's joined".

The decision is about to see the shift of the government from New Zealand National party, which led a minority government for the past nine years, to Labor party.

In seven weeks she reversed Labour's slide to gain 37 per cent of the national vote, leaving her competing with National's Bill English on 44 per cent, for the attentions of New Zealand First leader Winston Peters to form a coalition government.

"New Zealand is facing an election", Ms Bishop said.

New Zealand's currency fell by about 2% as the result became clear.

"I will not let false claims stand in the way of that relationship".

The agreement National has reached with New Zealand First would be able to form the basis of "a strong and cohesive" government, party leader Bill English says.

"I value our relationship with the Australian Govt highly", she first tweeted. "We said we could do this, we will do this".

She said Labor had used its New Zealand counterpart to raise questions about Deputy Prime Minister Barnaby Joyce's citizenship in the New Zealand parliament.

"I would find it very hard to build trust with members of a political party that had been used by the Australian Labor Party to seek to undermine the Australian government", she said.

Peters, who has been offered the deputy prime ministership under the deal, told reporters he believed Ardern offered change that could provide "capitalism with a human face".

In August, Ms Bishop accused New Zealand's opposition Labour Party of conspiring to undermine her government.

"It would be unprecedented for a Foreign Minister to pre-empt the Prime Minister in terms of giving congratulatory calls".

Ardern thanked Peters for his support, saying it was "a critical step to forming a Labour-led progressive government".

It took almost four weeks for NZ First's caucus and board to reach a "substantial consensus" on the policy concessions offered by Labour in return for its support in forming a government.

"In electing their third woman to serve as Prime Minister, New Zealanders have again provided an inspiration for women and girls around the world".

There might be some initial awkwardness in Australian-New Zealand relations with Ms Ardern's rise to power. "My team and I look forward to building and strengthening the connection between our two nations - and I trust the Government shares this commitment".

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