New Zealand Finance Minister Bill English is set to be confirmed as the country's next leader after both his competitors for the prime ministership dropped out of the race on Thursday.

Health Minister Jonathan Coleman and Police Minister Judith Collins both conceded the race as it became clear that English had the support of the 59-member caucus.

English said the swift agreement within the ruling center-right National Party on a new leader would help the government ensure a smooth transition following John Key's surprise resignation earlier this week.