The Government will discuss with the Commonwealth next week whether to lift sanctions against Fiji.
New Zealand imposed sporting, economic and military sanctions after last year's May 19 coup, during which George Speight overthrew Prime Minister Mahendra Chaudhry and his elected Government.
Fiji held elections last month and swore ina new Government, led by Prime Minister Laisenia Qarase.
New Zealand Foreign Minister Phil Goff said yesterday that Commonwealth envoy Pius Langa, a South African High Court judge, had just returned from Fiji and would make a recommendation on whether sanctions should be lifted and Fiji's Commonwealth suspension revoked.
He said that before making its own decision, NZ would discuss with the Commonwealth Justice Langa's recommendations and the conclusions reached by the Commonwealth Ministers Action Group.
"Once we are satisfied that proper constitutional procedures are being followed, New Zealand will be keen to normalise its relationship with Fiji at the earliest opportunity," Mr Goff said.
The main stumbling block may be Mr Qarase's decision not to invite Mr Chaudhry to join the cabinet, despite Fiji's constitution requiring that parties winning more than 10 per cent of the vote be invited to join the Government. Mr Chaudhry's party won 27 of 71 seats.
"Mr Qarase's decision not to invite Mr Chaudhry to join the cabinet raises issues of constitutionality and is currently being challenged before the Court of Appeal," Mr Goff said.