Watch: 'She exhibited extraordinary talent in the campaign itself from a hopeless position' - Winston gushes over PM-elect

Winston Peters has cited Jacinda Ardern's "extrodinary talent" on the campaign trail in bringing the Labour Party back from the brink of death, as an example of why she has the goods to be a successful and competent Prime Minister.

Asked if Mr Peters though Ms Ardern had enough experience at 37 to be Prime Minister, the New Zealand First leader's reply was unusually gracious.

After nearly two weeks of negotiations, Mr Peters announced his decision today. Source: 1 NEWS

"Well we wouldn’t have made the decision if we didn’t [have enough experience]," Mr Peters said.

"I think amongst other things she exhibited extraordinary talent in the campaign itself from a very hopeless position, to a position of being in the office of the next government today."

Mr Peters also deferred the announcement of ministerial positions and portfolios to Prime Minister-elect Ms Ardern's own upcoming press conference tonight.

Mr Peters may however by deputy Prime Minister.

1 NEWS political editor Corin Dann gives his immediate reaction to Winston Peters' decision he is joining forces with Labour. Source: 1 NEWS

"Let me just say any role I’ve got is in agreement with the Prime Minster if I decided to do it," Mr Peters said.

"Well if I choose to be the deputy Prime Minister, that was made clear to me, and if I chose to take certain portfolios then we would discuss it with the Prime Minister and I don’t want to say which ones those are." 

Ms Ardern became the youngest ever leader of the Labour Party at 37 when she took over as leader on August 1, just six weeks out from the election. 

NZ First is forming a coalition government with Labour. Source: 1 NEWS