The couple, who are parents to 10-month-old daughter Neve, became engaged over Easter, a spokesman for Ardern confirmed on Friday.
It is understood the news only emerged because a reporter attending the Pike River ceremony saw the Art Deco style ring on Ardern's left hand and asked Ardern's office about it.
The office later confirmed the news.
It is not known if Ardern or Gayford popped the question but the Prime Minister hinted it would have to be the latter in a previous interview.
In a January interview with the BBC Ardern said she would not let Gayford get away with not asking her.
During the interview, Victoria Derbyshire asked Ardern if she would ask Gayford to marry her.
"I would not ask, no. No."
When Derbyshire pointed out she was a feminist, Ardern replied: "Absolutely I'm a feminist. But I want to put him through the pain and torture of having to agonise about that question himself.
"No, that's letting him off the hook. Absolutely not," she said, laughing.