New Zealand has rejected a proposal by the Cook Islands, a self-governing nation in free association with the larger Pacific country, to allow the creation of its own passports and citizenship but said it could discuss independence.

New Zealand has rejected a proposal by the Cook Islands to introduce a separate passport for its citizens while allowing them to retain New Zealand citizenship. Cook Islands, a self-governing Pacific nation, is in "free association" with New Zealand, which is responsible for the former's foreign affairs and defence.

The Cook Islands can only have its own passport if they give up New Zealand citizenship, the office of New Zealand's Foreign Minister, Winston Peters said.