The State Services Commission has advised that the appointment of Mervyn English - the brother of finance minister Bill English - to the health ministry was done appropriately.
Labour Party state services spokesman Grant Robertson had raised concerns about the appointment, saying it was not advertised as would be expected.
Mervyn English was appointed into a policy position to lead the new Health Sector Forum.
Earlier this week health minister Tony Ryall asked the Ministry of Health and State Services Commission to look at the appointments of Mr English and consultant Paul McCormack to ensure they were done by proper processes.
Today he said both the Director General of Health and State Services Commission had now advised him that the appointments were in line with internal policies and guidelines.