Prime Minister John Key has announced New Zealanders will be able to vote on whether the country gets a new flag.

During the next parliamentary term, a cross-party group of MP's would be formed to recommend the best referenda process.

An independent steering group would also ensure the public was consulted and was able to contribute their own design ideas.

Key said the current flag symbolised a colonial and post-colonial era whose time has passed, and feels a new flag would acknowledge the country's independence.

However, he said it should not be presumed the flag will change, and retaining the current design was a possible outcome.