Ngati Whatua has withdrawn legal proceedings it launched over the sale of Crown land in Auckland.

The iwi was concerned plans to sell Crown property for residential development in Auckland could breach their right of first refusal to buy surplus Crown land.

Under the Development Protocol agreed as part of the Nga Mana Whenua o Tamakai Collective settlement agreement in 2012, the Crown will first provide iwi with the first opportunity to be the developer before offering it to other private sector developers.

Ngati Whatua Orakei Trust's deputy chair Ngarimu Blair said the agreement would facilitate the building of housing as quickly as possible.

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"The importance of these issues to the Crown, to iwi and to all Aucklanders is such that we are very happy to see the application to the High Court about the RFR issue withdrawn."

Housing Minister Nick Smith says an agreement has now been reached with all Auckland iwi where they will be able to get on and use vacant public land for housing - while ensuring Treaty settlements covering the region are upheld.