Minister for Treaty Settlements Andrew Little will hold off on signing the controversial Pare Hauraki settlement.
Instead, he will allow iwi to work out their overlapping interests on the marae using a tikanga Māori framework.
Mr Little made the announcement on Three's The Hui on Sunday.
He'd been forewarned earlier this month if he signs a settlement with the Pare Hauraki collective before allowing its neighbouring iwi to sort through their competing cross claims, he'll be taking them to "war".
The issue of overlapping claims has ramped up recently, with Tauranga Moana and a number of iwi marching on Parliament last week.
The decision to postpone has been cautiously welcomed by other iwi, including Ngāti Whātua spokesman Ngarimu Blair and Ngāti Paoa representative Haydn Solomon.
Watch both interviews.