New Plymouth District Council has agreed on a $23 million price tag with the Crown to transfer ownership of its leased lands in Waitara.
The 101 hectares of land, containing 780 leased properties, was illegally confiscated following the New Zealand Land Wars 150 years ago.
It will be sold to the Crown if Te Atiawa iwi decides it wants the land as part of its $88 million treaty settlement package.
Council chief executive Barbara McKerrow says the transfer price has been the first stage in an independent commercial valuation process.
She says the council is pleased to have reached a transfer price with the Office of Treaty Settlements after establishing the fair market value since April.
Te Atiawa Iwi Authority is to hold a series of meetings over the next few weeks to see if tribal members want the land as part of its treaty settlement.