Multiple iwi with competing interests have clashed over settlement for two decades, costing more than $30 million in numerous settlement attempts.
Under Ngati Tuwharetoa paramount chief Tumu te Heuheu, five iwi went to the Government and asked if they would be allowed to work out a settlement solution themselves.
In February this year, Tuwharetoa, Ngati Whakaue, Ngai Tuhoe, Ngati Rangitihi and Ngati Whare announced, with the Government's backing, that they were developing proposals for allocation.
Since then the iwi collective has entered into intense negotiations. The results will be put to the Government early this week and on Friday Treaty Negotiations Minister Michael Cullen is expected to say whether Labour will support the proposal.
The Herald understands it includes the establishment of a new institution which will receive accumulated and future rentals, hold land titles and have an economic development focus.
A spokesperson for Dr Cullen said the minister couldn't comment because the proposal hadn't been received.
One of the leaders involved in the process, Tamati Kruger, couldn't talk about specific detail but said there was a great deal of goodwill among the tribes.
"In terms of collective negotiations, this thing has travelled a greater distance than the efforts over the last 20 years.
"We are kind of hopeful that Cullen will announce the terms that we have been negotiating for a deed proposal that is acceptable."
The initiative almost stumbled a few times. However, Treaty lawyer Donna Hall's injunction to stop the negotiations failed, and the central collective has also managed to talk constructively with another collective, Te Pumautanga o Te Arawa, whose forestry deal was put on hold to allow negotiations to occur.
The true test could still be how the assets are divided between the iwi involved.
Mr Kruger said no one wanted to see a repeat of the decade-long fisheries allocation debacle.
"Other attempts fell to pieces at that point. How do we allocate interest and distribute wealth at that point? That's where the collective is at. So far discussions have been very diplomatic and searching. Everyone is aware that this is a critical point. Everyone is aware of the history and earnestly looking at finding solutions."
The Crown Forestry Rental Trust funds the negotiating process and holds the rentals. Chief executive Ben Dalton said this model of working through tough Treaty issues was the most innovative he had seen.
"If this works it will set the pace for all settlements. There's enough [political] will for a number of settlements to occur over the coming months."
