The Maori flag, Tino Rangatiratanga, will be flown from Wellington's Town Hall on Waitangi Day for the first time.
The flag was recognised by cabinet as the preferred national Maori flag in 2009 after months of consultation.
Mayor Celia Wade-Brown says the Maori flag will be flown together with the New Zealand national flag in the city on the country's national day of celebration.
"Waitangi Day is all about the spirit of mutual respect and nationhood so we will fly the two flags together. This symbolises and enhances the relationship between the Crown and Maori," she said.
Mana Party leader Hone Harawira thanked Ms Wade-Brown for the gesture.
However, Mr Harawira said most Maori were against making the flag into an official state flag because then the government could determine when it could fly, Fairfax reported.
Waitangi Day is a public holiday and a day of national celebrations but it is often marred by protests at Waitangi in Northland where dignitaries assemble.
Other councils have flown the Maori flag on Waitangi Day and other days of significance and it has been flown on Auckland Harbour Bridge and at Premier House.
NZN