The successful memorial submission was drafted by Wellington firm Studio Pacific Architecture in a joint design with artist Jason O'Hara and musician Warren Maxwell.
Ardern said they had some "fantastic submissions", with the decision coming down to a recommendation from a Design Selection Panel.
That choice took into consideration feedback from family members of those who died, recovery operation workers, and also took consultation from Auckland Council.
"The design reflects the enormity of the tragedy and provides a strong sense of connection and loss. The design has a strong narrative to engage visitors and provides a sanctuary within its walls, evoking the great emptiness experienced for those who lost their lives," Ardern said.
The Ministry for Culture and Heritage was first approached about the idea of a National Erebus Memorial in early 2016.
While the Ardern-led Government agreed to build a national memorial to Erebus victims in July 2018, the memorial will not be completed in time for the 40th anniversary of the 1979 disaster this year, as first envisioned.
Auckland Mayor Phil Goff welcomed the progress made on building the memorial, adding it was long overdue.
"With Flight 901 having left from Auckland and many of those on board residents from our city, it is appropriate for the memorial to be built here," Goff said.
"It has been important to work with the families of the Erebus victims and wherever possible take on board their wishes.
"The memorial in Dove-Myer Robinson Park, overlooking the Waitematā, is in a beautiful setting, which I hope will provide comfort and solace to those who lost family and friends on Erebus,"
Studio Pacific Architecture founding director Nick Barratt-Boyes described it as a "privilege" to contribute to a memorial experience that captures the "adventurous spirit" of those who lost their lives.