Ngati Whatua and Ngati Paoa have settled an on-going dispute over who takes mana whenua, or authority, over parts of Auckland.

Mana whenua interests in the east of Auckland and over much of the North Shore will be lead by Ngati Whatua while Ngati Paoa will be lead mana whenua in central Auckland.

Ngati Paoa spokesperson and chair Gary Thompson says the agreement proved iwi did not have to go before the courts to resolve disputes and paved the way forward for a new approach to overlapping claims between iwi.

"Hopefully, this is a sign to the Crown that iwi can work these matters out ourselves, so long as they are based on tikanga."

Earlier this week, Ngati Whatua Orakei sought for a case to be heard over the Crown's approach to overlapping claims.

The Court of Appeal declined the application, ruling it would not interfere in Parliament's business.

The agreement signed Thursday also enables Ngati Paoa to withdraw from on-going legal action and clears the way for the Iwi to settle with the Crown.