Labour's Jacinda Ardern will become the third female Prime Minister of New Zealand after reaching a deal with two other parties to form a government.

A month after the election, Labour will team with The Greens and with the nationalist New Zealand First Party, according to the latter's leader Winston Peters.  The nationalists won only nine seats in Parliament, but that was just enough to become kingmaker in an election that left the Labour-Green bloc with 54 seats, and the formerly ruling National Party with 56 seats.  The Nationals become the opposition after nine years in power.

There is a potential hitch:  Peters says the Greens would not be in government, making the likely outcome a confidence and supply arrangement - "If" the Green delegates approve the arrangement at a meeting via teleconference on Thursday night.

Peters didn't say how many ministries his party will get.  But he did say that part of the coalition deal will be to build 10,000 affordable homes each year because "there are far too many people living in degraded and poor conditions in this country".