The rahui placed on a building at Kaikohe school has been lifted.
David Rankin, of Kaikohe hapu Te Matarahurahu, placed a rahui on a newly opened classroom block at Kaikohe Intermediate School named Te Ahi Kaa Roa, saying it was inappropriate as it was the name of a papakainga that was abandoned after a series of tragedies involving children in the 1940s and 1950s.
Earlier this week Mr Rankin threatened to extend the rahui to apply to the whole school if the name did not change.
However, he said the school had agreed to find a new name for the building so he has lifted the rahui.
"This represents a good outcome, with common-sense prevailing," he said.
"I am pleased that the school was finally prepared to get round the table and acknowledge and apologise for its mistake, which had caused great offence to the Matarahurahu hapu, and had divided the community."