NZ First leader Winston Peters has announced a new government will be formed with Jacinda Ardern as new Prime Minister.

Peters has announced a coalition deal with the Labour Party and the Green Party.

The news comes 26 days after election day. NZ First has been negotiating with National and Labour for days, with Peters having moved the deadline for the announcement to this afternoon.

After days of nervous anticipation, New Zealanders finally heard the news from the kingmaker at 7pm.

Advertisement

"We believe that 11 days from start to finish is not too long to wait," Peters said during his announcement.

He proceeded to compare the New Zealand election to the German election.

He said this was a decision made by NZ First, not by its leader.

"This decision represents the majority in an MMP environment," he added.

NZ First believes an economic slowdown is looming and capitalism must "regain its human face".

New Zealanders took to Twitter to express their views on Peters' announcement.

A number of memes have also appeared online.