In a brief statement this morning, Luxon confirmed the New Zealand Government would not accept the invitation to join the board in its "current form", after considering the offer.
Foreign Minister Winston Peters posted a longer message on social media, saying a number of states had already stepped up to contribute to the board and "New Zealand would not add significant further value to that.”
He said there was a role for the board in Gaza, but it was essential that its work was consistent with the United Nations charter.
“It is a new body, and we need clarity on this, and on other questions relating to its scope, now and in the future."
A draft charter for the organisation, which would be chaired by Trump, was sent to a number of world leaders - including Canada's Mark Carney, Australia's Anthony Albanese, Saudi Arabia's Mohammed bin Salman and Russia's Vladimir Putin.
Opposition leaders condemned the invite, with Labour leader Chris Hipkins earlier labelling the government's refusal to rule out joining the board an "absolute disgrace".
Greens-co-leader Chlöe Swarbrick had written to the Prime Minister on Monday, urging Luxon to "publicly and unequivocally reject this invitation".
The board's creation comes shortly after the announcement of a 15-member Palestinian technocratic committee, charged with managing the day-to-day governance of post-war Gaza.
