The government will not be asking Israel to accept an ambassador who is also an envoy to the Palestinian Authority.
Today, Foreign Affairs Minister Murray McCully appointed Jim McLay, this country's top diplomat at the United Nations, as the representative to the Palestinian Authority.
The former deputy prime minister and National Party leader will take up the new role in May.
Last September, a diplomatic row broke out with Israel over its refusal to accept New Zealand's ambassador Jonathan Curr because he was also an envoy to the Palestinian Authority.
The envoy is based in Turkey and had performed both roles since 2008.
Gerard van Bohemen, who is a deputy secretary at the Ministry of Foreign Affairs and Trade, will succeed Mr McLay at the United Nations.