Seven indigenous Maori tribes have signed New Zealand's largest settlement over grievances arising from 19th century losses of lands, forests and fisheries during European settlement of the country.

The $NZ420 million ($A334 million) Treelords agreement will transfer ownership of 176,000 hectares of plantation forest and forest rents from the central government to the central North Island tribes.

Hundreds of Maori, some wearing traditional feather cloaks, gathered at the nation's parliament in Wellington to witness the signing of the agreement.

Chants, challenges and conch shell notes rang out during the ceremony; some wiped tears from their eyes during the speeches and signing.

The seven tribes include more than 100,000 people.