New Zealand has announced a phased reopening of its borders, as the country starts to ease some of the world's toughest Covid restrictions.

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Vaccinated New Zealanders in Australia will be able to go home from 27 February, and jabbed citizens in the rest of the world can do so from 13 March, PM Jacinda Ardern says.

They will have to self-isolate for 10 days but mandatory stays at state quarantine facilities will be scrapped.

The plan includes five stages.

New Zealand's borders have largely been closed for almost two years because of the pandemic.

"Opening back up in this managed way balances inflows of travellers so people can reunite and fill our workforce shortages, while also ensuring our healthcare system can manage an increase in cases," Ms Ardern said in a speech in Auckland on Thursday morning.

"After all, our strategy with Omicron is to slow the spread [of the Covid variant], and our borders are part of that."

The prime minister said there was "life before" the virus but "there will be life after Covid too".

"We are well on our way to reaching that destination. But we are not quite there yet," she stressed.