Prime Minister John Key says he has no intention of pulling New Zealand troops out of Afghanistan following the death of an SAS soldier during a terrorist attack.
The trooper was one of 16 New Zealand soldiers trying to rescue three British Council staff members who were trapped inside their compound in the Afghan capital, Kabul, during the Taliban attack.
The soldier, who has not yet been named, was shot in the chest and died on the way to hospital.
In the attack on Friday, a suicide car bomb destroyed the wall of the British Council compound, and men armed with machine guns and rocket-propelled grenades forced their way inside.
Mr Key says he understands the magnitude of loss for the family, but does not regret his decision to send troops to Afghanistan. He says New Zealand will not "cut and run" from its involvement in the country.
"The reason we're in Afghanistan is to provide support for a democratically elected government to take that country forward.
"The act of the insurgents is one of cowardice, and just an enormous tragedy that's claimed the life of a very brave New Zealander."
Mr Key says the SAS has been in Afghanistan for two and half years and are still set to return to New Zealand at the end of March.
SAS focus on security requirements
Chief of Defence Force Lieutenant-General Jones says those in the SAS accept it as one of the realities of operations, particularly the"high end" operations that the SAS get involved in.
The soldier killed is the first member of the SAS to die while in action in Afghanistan. His next of kin had been informed but his name is not being released until Monday as other friends and family members have yet to be told.
The families of other SAS soldiers in Kabul were to be reassured that it was not their relative who died. The Defence Force said there are 26 SAS personnel in Kabul.
General Rhys Jones said no other New Zealanders were injured and the special forces are holding up well in the wake of their colleague's death.
It has been confirmed that the deceased soldier is not Victoria Cross recipient Willie Apiata.
Attack marked anniversary of independence from Britain
Coalition intelligence suggested there could be an insurgent attack in Kabul on Friday, the 92nd anniversary of Afghan independence from Britain.
The BBC reports that at least eight Afghan police officers were killed, as well as three Afghan security guards from UK-based private security firm G4S, which provides protection for the British Council in Kabul.
General Jones told a news conference on Saturday that the first troops on the scene were a British infantry company, followed by about 100 Afghan Crisis Response Unit members.
Sixteen New Zealand SAS troops were given the task to rescue British Council staff and their bodyguards inside the compound, while Afghan forces were to focus on fighting the insurgents.
Three British nationals and two Ghurkas were rescued by the New Zealand soldiers, he said.
A correspondent in Kabul for The Telegraph newspaper, Ben Farmer, said the staff and guards were trapped in a safe room in the compound for five hours.
The British Council said it was deeply saddened by the death and was extremely grateful to the New Zealand forces who rescued its staff.
'Heavy heart'
Prime Minister John Key said he learned of the death with great sadness and a heavy heart, and offered his deep condolences to the soldier's family and the wider SAS family.
Governor-General Sir Anand Satyanand said military service carries many risks and the soldier's presence in Afghanistan showed his dedication to the Defence Force and the New Zealand mission to that country.
Labour Party leader Phil Goff and ACT leader Don Brash have joined the Government in offering condolences.
Flags are flying at half-mast at Returned and Services Association buildings across the country, the organisation said.
SAS soldiers engaged in earlier fighting
In June this year, New Zealand SAS soldiers were involved in a battle with insurgents in the Intercontinental Hotel in Kabul and two were wounded.
The following month, SAS troops were involved in another gun battle in Kabul. Prime Minister John Key said the New Zealand troops were mentoring Afghan forces and became involved in the operation when it was clear their help was needed.
British Prime Minister David Cameron said the latest attack did not bring into question the ability of the Afghan national forces to manage security in the country.
"Afghan security forces were in the lead," he said of Friday's battle. "Yes, they had the assistance of international forces, New Zealand forces, on this occasion but they were in the lead, they did effectively bring this to an end."
In August last year, New Zealand soldier Lieutenant Timothy O'Donnell died after a roadside bomb exploded under the patrol convoy he was leading in Bamyan province.