More opportunities will be available for younger people to travel between the UK and New Zealand to live and work.
UK Prime Minister Boris Johnson and his Kiwi counterpart Jacinda Ardern signed an agreement to extend the Youth Mobility and Working Holiday schemes.
The maximum age limit for applicants will be raised from 30 to 35, and the maximum length of time people can stay in the host country will be increased from various durations to three years.
The reciprocal visa schemes are aimed at giving people a better understanding of each country.
Home Secretary Priti Patel said: “Travelling, living and working overseas can be a wonderfully enriching experience.
“The UK loves to welcome Kiwis on their travels here, while thousands of Brits have made the similarly life-changing journey to the Southern Hemisphere.
“Today’s improvements to our visa schemes will give even more young Brits and New Zealanders the opportunity to develop their skills, make life-long connections and contribute to their host country.”
Ms Ardern, who is in London for talks with Mr Johnson, said: “Kiwis have long advocated for improvements to working holiday visas. We are so pleased to have reached this agreement today.
“I was one of many Kiwis to enjoy living and working in the UK, and we look forward to offering Brits the same wonderful experience in New Zealand.”
More information on the enhancement to the schemes will be announced next year.