The Anko Soft Activity Ball, which is multi-coloured with rattles on two sides, was sold at Kmart stores and online from August 3 until October 18 this year.
New Zealand's Ministry of Business, Innovation and Enterprise and the Australian Competition and Consumer Commission have issued recall notices for the product.
Consumers are advised that the attached rattles which contain small balls could separate from the toy.
"There is a risk of serious injury or death from choking if young children put the small balls in their mouth," the notice said.
Anyone with this type of toy is advised to stop using it immediately and return it to Kmart for a refund.
The toy has also been pulled off the shelves in Australia.