Opposition parties have accused the Government of relaxing some sanctions because it feared being isolated by Australia.
New Zealand will revoke sporting sanctions and reinstate 10 postgraduate scholarships for Fijian students.
John Key says New Zealand’s sanctions have been a bit tougher than Australia’s and the change of stance is partly about getting in line with other countries.
But he says it’s also an acknowledgement that Fiji is taking positive steps.
Mr Key says normal interaction with Fiji would resume once it holds free and fair elections, which are due next year.