Flying the Maori sovereignty flag alongside the New Zealand flag on Waitangi Day is a step towards better race relations, Prime Minister John Key says.
Cabinet yesterday decided the tino rangatiratanga flag would fly from Auckland Harbour Bridge, Premier House, Parliament and other significant sites controlled by the Government.
A series of hui were held to decide which Maori flag to fly, and Maori Affairs Minister Pita Sharples reported to ministers that 80 percent opted for tino rangatiratanga.
It has in the past been used by activists demanding Maori separatism, but Mr Key and Dr Sharples said they didn't expect a backlash.
"We have got to a point in time where we can take race relations forward in New Zealand," Mr Key said.
"It is about one step at a time, it is about building a harmonious New Zealand in which we respect each other." Dr Sharples said if there was any backlash from people who resented the flag as a symbol of Maori separatism it would be "minor in the scheme of things".
"We are looking forward to it being a positive sign," he said.
Dr Sharples acknowledged that a times the flag had represented conflict, but it had also been raised in celebration.
Mr Key agreed, saying it had been flown at big sports events including the Wellington sevens.
The decision doesn't mean any change to the status of the New Zealand flag, and the tino rangatiratanga flag won't be an official flag.
Last Waitangi Day the authorities who run the Auckland Harbour Bridge angered some Maori by refusing their request for the flag to be flown alongside the New Zealand flag.
Mr Key said a directive would be sent telling them to fly the flag on Waitangi Day next year.