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A piece of pounamu offered as part of a flourishing relationship between the Dunedin City Council and Ngai Tahu is to be incorporated into the ceremonial chain worn by Dunedin's next mayor.

The pounamu taonga was offered to the council by Te Runanga o Otakou and Kati Huirapa Runaka ki Puketeraki, of Ngai Tahu, in recognition of the council's work to improve the city.

Dunedin Mayor Dave Cull said he was ''quite humbled'' by Ngai Tahu's gift, which he stressed was not offered to him but to the entire council.

The gift recognised the relationship between the council and the two runanga was becoming ''much warmer and deeper''.

Mr Cull said he would vote to accept it ''for posterity, because that's what it is about''.

Councillors voted to accept the gift and to authorise council chief executive Sue Bidrose to work with Ngai Tahu to finalise the design.

It was expected to be similar to one of the medallions already on the mayoral chains, and a suitable carver and goldsmith would be commissioned to help with the design, staff said.