Prime Minister Jacinda Ardern has explained where the Government found the extra money for teachers in today's new offer announcement.
The explanation comes after the Government had repeatedly stated there was no more money available for teachers when the last failed deal was proposed.
Speaking from Fieldays in Waikato, Ms Ardern gave a number of reasons the improved offer was able to be made.
"You will see that this offer is different - it extends a year longer than what was anticipated at the beginning of negotiations," she told 1 NEWS.
"It also includes area schools and we have been able to re-prioritise money from other parts of the education system to put it into this deal."
Under the terms of the new offerl, most teachers would get a $12,000 salary rise if it is ratified.
Education Minister Chris Hipkins said today that the cost of the offers has increased by $271 million to cover this new ground.
The Prime Minister said she is "hopeful" the new offer will be accepted by teachers.
"Ultimately it's a recommended offer now, so I am really hopeful that this will be an outcome that is supported by the teachers," she said.
Discussions between primary teachers and the Ministry of Education over revised pay, workload and support began in May last year amid claims of a crisis in education, fuelled by a shortage of teachers.
Last month, union leaders for primary and secondary teachers said further industrial action was possible if an agreement could not be reached with the Government after the mega-strike that saw an estimated 50,000 teachers take strike action.