Both sides of a dispute over a new copyright law say they believe a compromise can be reached.
Section 92A of the Copyright Act requires Internet Service Providers to disconnect users accused of illegally downloading copyrighted material.
The act was passed last year. The Goverment has decided to delay its introduction until 27 March so that ISP and copyright holders can agree to a workable code of practice.
Both the Recording Industry Association of New Zealand, which represents recording artists, and the Telecommunications Carriers' Forum, which represents the bigger ISPs, say they are close to reaching such an agreement.