Auckland will move down to Alert Level 2 at 11.59pm tonight.
The rest New Zealand moved back down to Alert Level 1 on midnight Monday.
The shift means gatherings can increase from 10 people to 100. However, businesses will still need to maintain social distancing requirements.
It comes after the country last week saw four days of no new cases of community transmission, and two days in a row of no new cases in managed isolation or the community - six weeks after a community outbreak of the coronavirus was discovered in Auckland.
New Zealand now stands at 61 active cases of Covid-19, currently made up of 29 imported cases and the other 32 from the community.
The next alert level review will be on October 5, with any changes to come into effect two days later.