Ngapuhi are divided over the Government recognising the Te Ropu o Tuhoronuku mandate to represent the tribe in Treaty settlement negotiations, with one side contemplating legal action.
Tuhoronuku, a sub-committee of Te Runanga a Iwi o Ngapuhi, has praised the Government decision.
But Te Kotahitanga nga Hapu o Ngapuhi - which wants the Waitangi Tribunal to complete its current hearing of about 360 Ngapuhi Treaty claims before negotiating settlement - is considering a possible legal challenge.
Treaty Negotiations Minister Chris Finlayson and Maori Affairs Minister Pita Sharples said in a statement on Friday that Tuhoronuku would separate from the runanga and become an independent mandated authority.
All Ngapuhi would vote to elect the 22 members of the authority, consisting of one runanga representative, two kaumatua/kuia representatives, four urban representatives (two from Auckland and one each from Wellington and the South Island) and 15 representatives from Te Whare Tapu o Ngapuhi (three each from Hokianga, Kaikohe-Waimate Taiamai, Whangaroa, Te Pewhairangi and Whangarei ki Mangakahia). The authority would elect between three and six people to negotiate a settlement, the ministers said. Ngapuhi would later need to determine who would represent the tribe on a post-settlement governance entity, they said.