NZ Foreign Minister Murray McCully said New Zealand and Fiji are a step closer to normal diplomatic relations after finalising some key appointments.

Relations have been strained since the events of 2006, and worsened last year when each country expelled the others= senior diplomats.

McCully has met Fiji=s Foreign Minister, Ratu Inoke Kubuabola at the weekend.

He told Radio NZ that they have finalised initial appointments and New Zealand should have a secretary in Fiji by next week.

McCully said the two countries have many differences but they need to agree to disagree in the short term to avoid future expulsions.