UK Prime Minister Boris Johnson and his Kiwi counterpart Jacinda Ardern agreed to extend the Youth Mobility and Working Holiday schemes.
The age limit for applicants will go up from 30 to 35, and the maximum length of time people can stay in the host country will now be three years.
It follows similar deal to allow young people to work and travel in Australia.
The UK-New Zealand scheme was previously open to 18-30 year olds.
Home Secretary Priti Patel said the move “will give even more young Brits and New Zealanders the opportunity to develop their skills, make life-long connections and contribute to their host country”.