The New Zealand government has agreed to establish a travel bubble with Australia early next year, provided the rate of COVID-19 infections remains low in both countries.
In her final post-Cabinet press conference of the year, New Zealand Prime Minister Jacinda Ardern said the bubble would open in the first quarter of 2021.
The exact date will be announced next year after more arrangements have been made.
"It is our intention to name a date... in the New Year, once remaining details are locked down," Ms Ardern said, adding that New Zealanders were desperate for a "much-needed summer break".
Quarantine-free travel will also require Australian government approval, which Health Minister Greg Hunt said was very likely.
"This is very simple because we already have committed to the principle of a two-way bubble," Mr Hunt told reporters on Monday, in response to the announcement. "We have established it as a one-way bubble where those coming from New Zealand on the medical advice of the Chief Medical Officer could come safely without quarantine.
"Now, this gives the chance for New Zealanders or Australians to visit New Zealand, whether it is for friends, family, weddings, funerals, births, holidays, business, without having to quarantine. It is first step on a return to international normality."
The Morrison government already allows travellers from New Zealand to arrive in Australia without undergoing mandatory quarantine for 14 days.
Ms Ardern noted there are more details to work through, including segregation of staff and making sure contingency plans are in place.
The country's coronavirus response minister Chris Hipkins said airlines needed a notice period and there would need to be separation between staff working in different zones.
"No-one wants to see our travellers coming from a safe zone country mixing with our travellers from somewhere else, so we'll be making sure that's all lined up," he said.
"The airlines themselves need a bit of time to prepare to make sure they have sufficient planes and crew to fly the routes we're talking about, both with the trans-Tasman and the Cook Islands."
Ms Ardern also praised New Zealand’s response to the pandemic in paving the way for the bubble to open.
“This year may have been dominated by COVID-19, but for me, this year was the year of the team,” she said. “Just as our health response has put us at the front of the pack globally, our economy has also recovered better than expected.”
The New Zealand government has come under increasing pressure to restore pre-COVID travel arrangements, particularly as Australia's COVID caseload stabilises.
New Zealand has also agreed to start a bubble with the Cook Islands, which has not had a single case of COVID-19.
Ms Ardern said one-way travel from the Cook Islands to New Zealand would come before opening to Australia.
Additional reporting by AAP.