Former world squash champion Dame Susan Devoy says the reinstatement of the titles ''Sir'' and ''Dame'' to the New Zealand honours system is long overdue.
Knighthoods are to be reinstated in time for this year's Queen's Birthday honours.
They will replace the current Principal and Distinguished Companions of the New Zealand Order of Merit, which were introduced by the previous Labour government and have been given to 90 people since 2000.
The titles "Sir" and "Dame" were dropped in 2000. The Queen has already given approval for the change, which was formally announced by the Government on Sunday.
Eighty-five of those people are still alive and are being asked to decide if they want the title Sir or Dame. The 85 are being asked to signal by 30 June whether they want to change to knighthoods.
Dame Susan received her title in 1998 and says the honours introduced under Labour are not easily recognised. But she says it will be a hard decision for those choosing whether to accept the titles.
Olympic gold medallist Peter Snell, who was made a Distinguished Companion under the system, has indicated he will probably take up the title of Sir, because very few people knew what the existing honour was. He says members of his family are keen for him to take up the reinstated title.
Former All Black Colin Meads says he is undecided, but is not ruling out opting for a knighthood.
Labour Party leader Phil Goff says many people will view the decision as a backward step and return to British aristocracy.
Mr Goff says knighthoods do not reflect New Zealand's values, and reverting to the old titles is contrary to steps taken in other countries such as Canada and Australia.