Prime Minister Helen Clark says the people of Tonga revered the King throughout his reign.
King Tupou had presided over Tonga's transformation into a fully fledged member of the Commonwealth and the United Nations as an independent sovereign state, she said.
He had followed a path of peace and stability for his country, she said.
"While retaining the important cultural heritage and institutions of Tonga, he also sought to place Tonga in a position to take advantage of the benefits of economic globalisation."
She said flags on Government buildings in New Zealand would fly at half-mast on the day of the funeral as a mark of respect to the King.
Foreign Minister Winston Peters said: "Tonga and New Zealand have been close, friendly neighbours for many years. During King Taufa'ahau Tupou IV's reign, the relationship broadened beyond shared cultural links, as we cooperated across a range of mutual interests and in a variety of organisations like the Pacific Islands Forum. We hope this very valuable partnership will continue."
Pacific Island Affairs Minister Phil Goff and Associate Minister Luamanuvao Winnie Laban expressed their sympathy and condolences to the people of Tonga and New Zealand's Tongan community.
"As Minister of Pacific Island Affairs, I extend to Queen Halaevalu Mata'aho Tukuaho, the Tongan Royal Family and the people of Tonga our deepest condolences. New Zealand's 40,000 strong Tongan community shares the grief of Tongans everywhere at this sad time," Mr Goff said.
The loss of King Tupou will touch Tongan people living here in Aotearoa or in their homeland, the state of Tonga said Tariana Turia, Co-leader of the Maori Party.
"The whakapapa relationship that tangata whenua hold with the Tongan people is very important to us all and predates Te Tiriti o Waitangi. We all felt the importance of those connections in the recent tangihanga for the late Queen, Te Arikinui Dame Te Atairangikaahu."
Co-leader Dr Pita Sharples said: "As a personal memory, I am aware that he always followed the rugby between our two nations with great pleasure." The Green Party Co-Leader Jeanette Fitzsimons said: "We join the Tongan Royal Family and the people of Tonga in their grief at the passing of their Head of State.
"During King Tupou IV's long reign Tonga became an independent sovereign state and joined the Commonwealth and the United Nations. It has been a time of much change, but also peace and stability for his country and he will be remembered for this."
United Future leader Peter Dunne said: "In the last Parliament, I chaired a parliamentary select committee inquiry into the relationship between New Zealand and Tonga ... whatever criticisms ordinary Tongans may have had of how Tonga was being run, their affection and respect for the late King was paramount."
Melino Maka, the chairman of the Tongan Advisory Council in New Zealand, said the King's death would leave a "huge gap" in Tongan society.
"He was held not only with respect but he was much loved. He was the founder of modern Tonga."
The King established Tonga High School and changed education. He was the first member of the royal family and the first Tongan to graduate from an overseas university.
"Through that he helped develop Tonga. The mana that he held means it was always going to be difficult to be replaced," Mr Maka said.
Flags to fly at half-mast on day of funeral as NZ's mark of respect
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