Iranian overstayer Thomas Yadegary will be allowed to remain in New Zealand on bail after the Department of Labour decided not to fight a Court of Appeal ruling.
A High Court judge released Mr Yadegary from prison last year where he had been held for refusing to sign passport documents necessary for his deportation to Iran.
Last month, the Court of Appeal upheld that decision and the Department of Labour has decided not to mount a further challenge.
Mr Yadegary can remain in New Zealand but may face a challenge when a new immigration law comes into effect.
He says he will be persecuted if he returns to Iran because he converted from Islam to Christianity.