Health and Education Minister Chris Hipkins says coalition talks between Labour and Greens have been "positive and constructive" as they meet again today.
Hipkins, who is not directly involved with the negotiations, this morning told TVNZ1's Breakfast Labour would like to continue working with the left-wing minor party.
"I think the Greens were planning for a different scenario in which it was a Labour-Green Government and we've got a Labour majority Government and that's not necessarily what they had planned for," he said.
"But I think we will want to be able to work with them if we can. We've had a really good working relationship with them over the last three years, I think our preference is to continue that over the next three if we can."
At the 2020 election Labour received 49.1 per cent of votes, equivalent to 64 seats - enough to govern alone if they wish. Meanwhile, the Greens received 7.6 per cent, which rounded to eight per cent gives them 10 seats in Parliament. There is still the result of the special vote to be released, making up an estimated 17 per cent of the overall vote.
But the Greens are keen to work with Labour again, with a decision expected at the end of this week.
"We still haven't landed on a final offer. We are working through and getting to that point," Greens co-leader Marama Davidson told media after an hour-and-a-half of negotiations concluded yesterday.
They need 75 per cent support from members to join the Government in some form.
"It's a straight up and down vote," co-leader Jame Shaw said. "We would either join the Government, or not join the Government."