McClay said that he would meet with senior Chinese leaders, including Vice-Premier Wang Yang and a counterpart in the Ministry of Commerce.

A report from New Zealand's Ministry of Business, Innovation and Employment on Tuesday said officials were expected to conclude preparations for an FTA upgrade in October and provide New Zealand and Chinese ministers with a "joint proposal/scope" for their announcement.

An agreement to explore an upgrade of the FTA, signed in 2008, was reached during Chinese President Xi Jinping's visit in November last year and an assessment process was launched in March.

Subject to ministerial endorsement, it was hoped that negotiations could commence by end of this year with a view to concluding by the end of 2016.

An upgrade of the FTA would ensure access to New Zealand's second largest market, worth more than NZ$10 billion ($6.37 billion) in 2014, continued under favorable conditions, with New Zealand businesses staying competitive in China, said the ministry report.