Labour leader Chris Hipkins has ruled out working with New Zealand First leader Winston Peters at this year’s election.

Peters has been roundly criticised after comments made in the House last week.

Responding to heckling, he attacked Green MP Lawrence Xu-nan, telling him to go back to his "own country".  

Hipkins said on Tuesday that Peters' position as Foreign Affairs Minister was completely untenable.

"He's making international headlines for all the wrong reasons. He can't continue in that job, he can't credibly represent New Zealand on the world stage."

Hipkins said he ruled out working with Peters and New Zealand First before the 2023 election and had not regretted it.

"Behaviour like we've seen with Winston Peters and [NZ First deputy leader] Shane Jones as well, with his racist comments towards Indians in recent months, is not compatible with the sort of government I want to lead."

Earlier this year, Jones warned of of a "butter chicken tsunami" coming to New Zealand after the signing of the free trade agreement with India. 

Asked if he would rule out having Peters as Foreign Affairs Minister if he led the next government, Hipkins said Peters could not be that minister in any government.

"He cannot represent New Zealand credibly on the world stage when he's making outwardly racist comments."

Asked whether he could work with New Zealand First, Hipkins said "we couldn't work with them at the last election, nothing really has changed that makes this more likely at the coming election."

Speaking at a post-Cabinet media conference on Monday afternoon, Prime Minister Christopher Luxon said he had spoken to coalition partner Peters about his comments.

However, he refused to outline what exactly was discussed, and would not say whether he expressed disappointment in his Foreign Minister.

He told RNZ’s Morning Report programme on Monday that Peters' comments were racist but that he had not yet spoken to him directly.

At the media conference, Luxon would not say if he would have Peters as Foreign Affairs Minister again if he won the election, saying that was all "hypothetical", nor would he be drawn on questions about the risk to coalition stability if Luxon were to discipline or try fire Peters.

Opportunity Party leader Qiulae Wong has also said her party would not support a government that had Peters in the role.

"As we've always said, we will sit down and try to find common ground, and that remains the case with New Zealand First.

"However, I think that his role as Minister of Foreign Affairs has become untenable, and so we wouldn't want to be part of a government where he is still in that role."

The general election will be held on November 7.