A little penguin has been causing big traffic problems on the north island of New Zealand.

In the city of Porirua, just north of Wellington, the penguin was quite literally stopping traffic this morning.

Local woman Tolugafale Gaualofa was driving along when she spotted the bird waddling along Falcon street.

She says the street is about three kilometres from the water.

"It's amazing, a penguin, right in the middle of New Zealand," she said.

Porirua Police took the penguin back to their station, where it was granted its freedom and released into the city's harbour.