Sporting ties with Fiji can resume now that the Government has lifted sanctions against the country.
But coup leader George Speight and others associated with his takeover of Fiji's Parliament are still banned from New Zealand.
The Government installed targeted sanctions against Fiji in July last year after the May coup.
Foreign Affairs Minister Phil Goff said yesterday that the decision by Commonwealth ministers to readmit Fiji to the Commonwealth paved the way for the resumption of full relations.
The Commonwealth Ministerial Action Group had decided Fiji's progress towards returning to constitutional democracy should be recognised.
Mr Goff said there was still concern over the constitutionality of Fiji's cabinet and the action group had placed conditions on the lifting of the suspension.
"Fiji will remain under Commonwealth scrutiny until the constitutional issue has been properly resolved, when the matter goes before the Fiji Court of Appeal in February 2002," he said.
New Zealand's ban on sporting contacts would be removed, as well as restrictions on contact with Fijian ministers and officials.
Sanctions on aid and military contact would also be lifted.
"The visa ban against George Speight and others associated with the coup will remain in place indefinitely," he said.
Mr Goff said long-standing ties between Fiji and New Zealand had suffered because of the strain on the relationship since the coup.
"But ... we are now in a position where New Zealand and the Commonwealth can have open dialogue with Fiji and rebuild the relationship."
NZ to rebuild former ties with Fiji
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