In a bid to win back all seven Maori seats, Mana Movement will contest only the Te Tai Tokerau seat at this year's election while Maori Party will not stand in that electorate.
The announcement was made this morning as the two parties signed an agreement in Whangarei.
Peace moves between the two parties have been going on since last July when Maori Party president Tukoroirangi Morgan approached Mana's leader Hone Harawira.
Lisa McNab, Mana Movement president, said the agreement would allow the two parties to carry a strong mandate to win all seven Maori seats.
"It allows Mana to focus on Te Tai Tokerau at the 2017 general election, a decision we'd actually made at our AGM last year.