New Zealand's former trade and defence minister Phil Goff is to replace Helen Clark as leader of New Zealand's Labour Party after the party suffered a resounding defeat in the general election on Saturday.

Ms Clark, who led the country for a record nine years, announced her resignation after losing to the National Party's John Key.

Mr Goff entered parliament in 1981, the same year as Ms Clark. He was a senior minister in the previous Labour government and was foreign minister in the current one until 2005 when the job was given to Winston Peters, leader of the New Zealand First party, as part of a coalition deal after the last election.

Mr Goff, 55 a former political studies lecturer, was seen the clear frontrunner to replace Clark and was unopposed.

"The outcome of today's caucus demonstrates that Labour will be a strong, united and determined Opposition," he said in a statement.

He has held a wide range of portfolios including foreign affairs, education, and justice. A year ago, a nephew of Goff was killed in an ambush in Afghanistan, while serving with the U.S. army.

Annette King, the former justice and police minister will become deputy leader, replacing Michael Cullen. David Cunliffe, the former health minister, was named finance spokesman.

Mr Key, a former investment banker, will be sworn in as Prime Minister within a week after securing support from the right-wing ACT party and the smaller United Future Party to secure a coalition, essential under the country's hybrid proportional voting system.

In a significant move, he also began talks with the Maori party which could lead to a formal agreement with the Maori Party.

It is expected that he will offer the Maori Party at least one ministry to secure its support. The leaders of the party have said they will consult their membership before they decide whether or not to do a deal with National.

Mr Key is keen for a speedy transition to allow him to attend next week's APEC (Asia Pacific Economic Cooperation group) summit in Peru and to begin to tackle the country's economic problems..

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