New Zealand is to almost halve the number of troops it has deployed in East Timor.
Defence Minister Wayne Mapp says the security situation has improved, and there is increasing confidence in its move towards permanent stability.
Mr Mapp says East Timor still needs considerable help with security, but the nature of its needs are changing and fewer New Zealand and Australian troops are required.
Seventy-five Defence Force personnel leave for East Timor on Wednesday, about half of the size of previous rotations.
New Zealand has had a light infantry company in East Timor since May 2006.
