Watch: United Future leader Damian Light says he's not 'finished' in politics as party disbands

United Future leader Damian Light says he and other party MPs "haven't finished in politics" as the party reveals it has voted to disband.

Mr Light made the announcement this morning citing falling vote numbers and failing to reach to the 5 per cent threshold at this years' election.

Speaking this morning to TVNZ 1's Breakfast, Mr Light said he would find a new role in New Zealand's political landscape.

"I certainly haven't finished in politics and I know a lot of the other candidates as well have still got quite a strong passion for it," he said.

Peter Dunne - 'I'm sorry to see it go'

Meanwhile, former party leader and founder Peter Dunne says the disbanding of the party following his retirement this year is "sad but understandable".

Mr Dunne said in a statement that he did not attend the annual general meeting at the weekend where the party voted to disband, but he understands the reasons why they made that decision.

After three decades, the United Future leader won't be standing for Ohariu after polling saw him in trouble. Source: Breakfast

"Without a Parliamentary seat, and with limited resources it will always be difficult for small parties founded on ideals and values, not personal wealth and ambition to compete in today's political environment," Mr Dunne said.

"Nevertheless, I am extremely proud of what United Future able to achieve as a support partner to two Labour-led and three National-led Governments from 2002 to 2017, and I express my deepest thanks to our members, candidates and supporters during that time.

"UnitedFuture was a Party in the Liberal Democratic tradition, and while I'm sorry to see it go, I know that the values it espoused will not continue and that the Liberal Democratic flame in New Zealand's political culture will burn again in the future.

"I take this opportunity to wish Damian Light and involved in the Party all the best for their political futures - they have much to contribute."

Mr Dunne held the Ohariu seat for more than 33 years - since 1984 - and announced his retirement just weeks out from this year's general election.

Mr Light says he's "proud" of his party's record of "making MMP work". Source: Breakfast