An investigation by the Saudi Government's general prosecutor has now found that Khashoggi was in the consulate when a quarrel broke out, escalating to a fatal fight.
Peters said: "While this is an important admission, the killing by government operatives is deeply disturbing. Many questions remain unanswered."
Ministry of Foreign Affairs and Trade officials met with the Saudi Embassy in Wellington on Tuesday to raise concerns over the disappearance, and have reiterated the need for the investigation to be full and transparent.
The disappearance created a diplomatic rift between Saudi Arabia and the West, with many international firms pulling out of a high-profile investment summit, the Future Investment Initiative conference, due to take place later this month in Riyadh.
Trade Minister David Parker said that New Zealand officials will not attend the conference.
"As for the trading relationship in the region, the FTA talks remain stalled pending the Gulf Cooperation Council resolving their dispute with Qatar, which we do not expect to be resolved in the near future," Parker said.
The New Zealand Government is awaiting the outcome of the Turkish investigation and is keeping all options for next steps under review.
"We look forward to the results of the investigation being led by Turkey, and we urge Saudi Arabia to implement its undertaking to participate openly and transparently in that investigation," Peters said.
"With the confirmation of the death, we express our deepest condolences to Mr Khashoggi's family and friends."
According to a list confirmed by Turkish officials, the assassination squad included 15 Saudis who flew to Istanbul on the morning of October 2, participated in the operation and then quickly departed the country.
At least 12 members of that team reportedly have links to Mohammed himself, though the Saudi statement did not implicate the Crown Prince.
As a result of its investigation, the Saudi Government said it had fired five top officials and arrested 18 other Saudis. Those fired included Mohammed's adviser Saud al-Qahtani and deputy intelligence chief Major General Ahmed al-Assiri.
The Saudi investigation found that the "suspects" travelled to Istanbul to meet with Khashoggi as he had expressed interest in returning to Saudi Arabia, the official news agency said.
Discussions that took place "developed in a negative way" and "led to a fight and a quarrel between some of them and the citizen," it said.
"The brawl aggravated to lead to his death and their attempt to conceal and cover what happened," it said.
Investigations are continuing with the 18 detainees, it said, without naming them.
On Thursday, US President Donald Trump said Khashoggi was likely dead and warned of "very severe" measures against Saudi Arabia if they are found to be responsible.
