Police responded to an altercation between three people in downtown Wellington about 3.30am on Sunday.
The incident has been described privately to AAP as a "drunken punch-up" involving the male partner of an Australian diplomat stationed in the Kiwi capital.
"Police took one person into custody who was later released without charge after it was confirmed they held diplomatic immunity," a police spokeswoman said.
The incident reportedly happened after the Bledisloe Cup match in Wellington at the weekend. (Andrew Cornaga/AAP PHOTOS)
Diplomatic immunity is a broadly recognised right afforded to overseas-stationed representatives which allows them freedom to conduct diplomatic engagements.
However, owing to the seriousness of the alleged crime, police confirmed they had begun a process to have the immunity stripped from the man.
It is understood the man was wearing Wallabies supporter gear, having hours earlier witnessed the Australian men's rugby side lose 33-13 at Sky Stadium.
Australia's Department of Foreign Affairs and Trade are yet to respond to requests for comment regarding the incident, which was first reported by Sky News.
New Zealand's Ministry of Foreign Affairs and Trade confirmed it had engaged Australia's High Commission over the incident.
"It is the expectation of the government of New Zealand that foreign representatives and their accredited family members will comply with New Zealand laws and regulations," a spokeswoman said.
Relevant NZ ministers have been briefed on the matter.
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