John Key says he wants to scrap the British-influenced red white and blue design to go with an All Blacks inspired theme
New Zealand will vote whether or not the Union Jack emblem should be ditched from its national flag.
Prime Minister John Key says adopting the emblem of the All Blacks rugby team would better reflect the country.
He believes the Union Jack harks back to the days when New Zealand was just one of "the colonies" of the British Empire.
Mr Key said the vote would be held in the next three years.
Speaking at Victory University he said: "The design of the New Zealand flag symbolises a colonial and post-colonial era whose time has passed."
The flag consists of the Southern Cross constellation but also has a union flag in the top corner.
Mr Key said: "The flag remains dominated by the Union Jack in a way that we ourselves are no longer dominated by the United Kingdom.
"I am proposing that we take one more step in the evolution of modern New Zealand by acknowledging our independence through a new flag."
Mr Key said the silver fern on a black background favoured by teams like the All Blacks would be a more appropriate emblem.
He said the success of athletes gave "the silver fern on a black background a distinctive and uniquely New Zealand identity."
New Zealand has no plans to cut ties with the British monarchy and there is a real possibility the current flag will remain.
Mr Key said: "We retain a strong and important constitutional link to the monarchy and I get no sense of any groundswell of support to let that go."
The National Party are opposed by the Labour party in September, but Labour leader David Cunliffe said voting on a new flag was an area where the parties agree.
Mr Cunliffe said: "We're not going to differ or divide from the government on this issue. It's a broad constitutional issue, if the country wants a debate about the flag so be it."
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