Sir Richard Hadlee has bowel cancer.
Last month the former cricket all-rounder had a routine, three-year colonoscopy where a tumour was discovered.
He has since had a successful operation to remove it, and has recovered well.
As a safeguard, further treatment in the form of chemotherapy will commence shortly and last a few months.
His wife, Lady Dianne, said Hadlee's expected to make a full recovery over time.
"Our reasons for making this statement are a desire to be transparent, and to prevent the inevitable speculation and incorrect rumours," she wrote.
"I would also request people's understanding and acceptance of our request for privacy while we go through the next few months, both for ourselves and for the extended Hadlee family."
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Hadlee has previously been diagnosed with Wolff–Parkinson–White Syndrome, a disorder which caused his heart to beat irregularly.
The 66-year-old previously needed open heart surgery to survive and still takes medication to thin his blood and keep his heart beat regular.
Hadlee's cricketing greatness is easily defined. He secured a world record 431 test wickets by retirement, had been the lynchpin in New Zealand's golden era of the 1980s and brandished a knighthood in his final test.