New Zealand has announced the resumption of free trade talks with Malaysia, ending a break of more than two years in negotiations.

A "refreshed mandate" has been issued and negotiations with Malaysia will start again, Prime Minister Helen Clark said.

The talks opened in 2005 but were put on hold in April 2006, while Malaysia worked on its FTA with the United States and New Zealand focused on its trade agreement with China.

Malaysia was listed in 2005 as New Zealand's largest trading partner in the Association of Southeast Asian Nations (ASEAN), and the eighth largest trading partner globally.