Foreign Affairs Minister Murray McCully says North Korea's plans to use a long-range ballistic missile to launch a satellitewould be detrimental to its re-engagement with the international community.
North Korea's state news agency has announced the rocket will be launched between 10 December and 22 December.
Mr McCully says the use of ballistic missile technology for the proposed launch is inconsistent with United Nations Security Council resolutions and is urging North Korea to abandon its plan.
"It's obviously going to ... destabilise neighbouring countries who obviously have reasons to fear the intentions of the DPRK (Democratic People's Republic of Korea).
"It's going to mean any prospect of six-party talks getting kicked off again fades into the distance."