There's been a breakthrough on the Craggy Peak walking track controversy.

Ngāti Kahungunu iwi and Craggy Range Winery have done a deal to build an alternative track up Te Mata Peak.

The two organisations have been at loggerheads after the winery built a walking track, without consulting the iwi.

After facing a backlash, the winery announced last year it would remove the track and restore the land but then reneged on that promise offering alternative options to keep the track.

However, yesterday morning the pair announced a shock agreement to purchase 28 hectares of land on Te Mata Peak together, closing the original track and to instead build a culturally sensitive alternative track in partnership.

The partners say they will ensure the land and the resulting track will be held in trust for the benefit of Kahungunu descendants and the wider Hawke's Bay community.