New Zealand First will not be standing a candidate in the Northcote by-election.
The by-election in the Auckland seat was sparked by the departure of National MP Jonathan Coleman from Parliament.
National, Labour and the Greens are all standing candidates.
New Zealand First said the consensus view among the party and the caucus was that standing a candidate would endorse Dr Coleman "walking out on his electorate and needlessly costing the taxpayers a million dollars".
Northcote has a population of around 65,000 people. The biggest age group is people in their 30s and 40s and it's a multicultural suburb - one in four residents identify as Asian.