After months of prevarication, National leader Chris Luxon has admitted he will pursue a coalition with Winston Peters' New Zealand First after the October 14 election - but only as a last resort.
Mr Luxon has even left open the prospect of a sensational return for Mr Peters as deputy prime minister in declaring himself open to a deal with the wily 78-year-old.
The worst-kept secret in New Zealand politics was confirmed on Monday morning, when Mr Luxon issued a statement on social media.
Kiwis will begin voting in election on Wednesday, with polls pointing towards a change after two terms of Labour-led government, to the centre-right National party.
However, the same polls show National falling short of a majority and needing at least one other party to govern, with right-wing libertarians ACT and Mr Peters' populists New Zealand First on the menu for Mr Luxon in post-election negotiations.
"My strong preference is to form a strong and stable two party coalition government between National and ACT," Mr Luxon said.
"I believe that government would be in the best interests of New Zealanders at this very uncertain time.
"However, if New Zealand First is returned to parliament and I need to pick up the phone to Mr Peters ... I will make that call."
Mr Luxon had been peppered with questions about whether he'd work with NZ First for months, having already ruled out left-leaning and far-right fringe parties.
On Newstalk ZB, Mr Luxon said he declared his hand due to his view a change of government was desperately needed.
"Labour's record is abysmal in three years with an absolute majority and God help us if they end up going with Te Pati Maori and the Greens," he said.
"We'd all be packing up and leaving."
The decision changes the dynamic of the election campaign, which will shift to the possibilities of how a National-ACT-NZ First coalition could govern.
While National and ACT are aligned on key issues, NZ First are opposed to their centrepiece promise for tax cuts, which Mr Peters says New Zealand cannot afford.
NZ First is also attempting to woo the radical anti-vax fringe with a promise of a fresh inquiry into COVID-19 with sweeping powers.
It's not yet clear whether NZ First will be in parliament: parties need to win at least five per cent of the vote to return MPs in New Zealand, and the party is polling around that threshold.
There's also the issue of the dynamic between the leaders, with ACT leader David Seymour and Mr Peters regularly insulting each other on the campaign trail.
Last week, Mr Seymour likened him to an arsonist, while Mr Peters called Mr Seymour - 38 years his junior - a child.
"They will find a way through that," Mr Luxon insisted.
Mr Luxon wouldn't entertain the possibilities for a coalition - which could include sharing a cabinet table or relegating one party to the outer ministry - or how he would split ministries.
"All I can say is I'll be prime minister and Nicola Willis will be finance minister and beyond that it will be something we'll talk through in coalition arrangements," he said.
Mr Seymour says he will not share a cabinet table with Mr Peters, while Mr Peters says he is a "forgiving guy that could work with anybody".
