New Zealand's foreign minister Winston Peters signed the pact in Rarotonga and said it was about "setting a course together for the future", while Cook Islands Prime Minister Mark Brown said the agreement was about "moving forward".

Major partner New Zealand had halted millions of dollars in aid to the Cook Islands citing a "lack of consultation" over agreements struck with China in February 2025 covering deep-sea mining, regional cooperation and economic issues.

Self-governing Cook Islands has a "free association" pact with New Zealand, its former colonial ruler, which provides budgetary assistance as well as help on foreign affairs and defence.

New Zealand had provided US$116 million (NZ$194 million) to the Cook Islands between 2022 and 2025, according to government figures, but halted funding in response to the China deal.

In June last year, Brown described New Zealand's actions as "patronising", and "inconsistent with modern partnership".

Peters on Thursday said the funding support would now resume.

"We earlier took a difficult decision to pause parts of New Zealand's funding to the Cook Islands government because there was no shared understanding of the nature of our special constitutional relationship," Peters said.

"Now that we have come to a mutually satisfactory understanding of the underpinnings of our partnership, we are pleased to normalise all aspects of our relationship, including New Zealand's financial support."

Brown said the new defence pact with New Zealand would not affect the Cook Islands' deal with China.

"This declaration is about security and defence across our region, and I'm confident that the provisions we have in this declaration will address any concerns that may have occurred in the past, and will certainly address any concerns moving forward," Brown said.

After signing the defence agreement, Peters said the Cook Islands' deal with China was "not a concern of mine".

"If anyone understands the Polynesian society, cousins fall out now and again," Peters said. "Our job is getting it back."

Brown said Cook Islanders had served in all major wars, sacrificing "blood, sweat and tears" for the relationship with New Zealand, and cited the All Blacks rugby team in discussing close ties between the countries.

"Speaking of wearing the uniform and contributions, when the call did come out I was very pleased to see that one of our very own answered the call and is now the coach of the New Zealand All Blacks."

Brown was referencing Cook Islands-Maori Dave Rennie.