Labour has selected lawyer and board member Arena Williams as its candidate for Manurewa, a seat currently held by Louisa Wall.
Wall announced on Friday she would be withdrawing from the contested selection to seek a place on Labour's list only after a negotiation with party president Claire Szabo.
Earlier this month, it was revealed Wall was pursuing legal action against her party over Williams' late nomination to contest the seat.
She sought advice from a Queen's Counsel over Williams' nomination, which came in after deadline in early February.
The Manurewa nomination was also sought by local activist Ian Dunwoodie who lost the selection to Wall in 2011.