Parliament has cleared the way for a National War Memorial Park to be developed in Wellington.
A bill passed on Thursday gives authorisation for the project, which involves putting Buckle St underground alongside the National War Memorial site and putting in landscaped areas with walking paths.
"The National War Memorial Park will provide an appropriate setting for what is one of our country's most sacred sites," Culture and Heritage Minister Chris Finlayson said after the bill had been passed.
"The Anzac Day commemorations in 2015 will take place in a new, open space that can accommodate the ever-increasing number of New Zealanders who attend in recognition of the importance of these events."
Work will start early next year.