Prime Minister Jacinda Ardern sees preparations for talks between Donald Trump and North Korea leader Kim Jong-un as a welcome "de-escalation" in their nuclear stand-off.
The May meeting would be the first-ever US-North Korea summit.
President Kim committed to "denuclearisation" and to suspending nuclear or missile tests, South Korea's National Security Office head Chung Eui-yong earlier told reporters at the White House.
Even a few months ago this seemed like an impossibility.
White House spokeswoman Sarah Sanders said Mr Trump "will accept the invitation to meet with Kim Jong-un at a place and time to be determined".
Mr Trump tweeted later: "Great progress being made but sanctions will remain until an agreement is reached."
Ms Ardern says pushing for disarmament is especially important today, with regimes like North Korea squarely in the sights.
Ms Ardern said talks were something the New Zealand government had been hoping for and she thought it was "a sign we are moving further away" from the prospect of war.
"Open dialogue is something we've wanted to see as opposed to a further escalation - and you cannot get higher level than this," she said.
She said sanctions had been having an impact on North Korea, but that she wasn't sure if the meeting would lead to a long-term solution to the stand-off.
"It is a hugely complex issue and whether or not we will see an outcome straight off the bat time will tell," she said.
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