The Finance Minister has confirmed claims by Winston Peters that the fees-free university scheme, which covers the final year of tertiary education study for students, will be scrapped in the upcoming Budget.

The New Zealand First Leader made the comments to Newstalk ZB Friday evening.

In a statement this evening Nicola Willis confirmed the comments.

"Ongoing coalition negotiations have led to good Budget policy decisions that further the immediate and long-term interests of New Zealanders."

"We will have more to say about this in due course," she said.

Willis also confirmed that students completing their tertiary studies this year remained eligible for fees-free.