The State drug-buying agency, Pharmac, is looking at funding a contraceptive implant for women.
The implant, which stays in a woman's arm for up to five years, currently costs about $300, but would be free if subsidised by Pharmac.
Pharmac has reached a provisional agreement to fund the implant, called Jadelle.
If approved, it will be the first time Pharmac has subsidised this type of contraceptive.
The agency estimates between 30,000 - 35,000 women could use the implant and it has no plans to restrict access.
The Family Planning Association welcomed the announcement, saying that unlike oral contraceptives, the implant can be inserted and then forgotten about.