New Zealand's government has announced plans to hold a referendum on legalising cannabis for personal use in 2020.

The country's justice minister Andrew Little confirmed the plans for a referendum on recreational use, saying it will be held alongside the next general election.

He told reporters: "The agreement is that it will be binding.

"There is still bit of detail still to be worked through... but we’re telling the electoral commission that's when it will be".

It comes in the wake of the limited legalisation of medicinal cannabis by the New Zealand parliament earlier this month.

A deal to hold a referendum on legalising the personal use of cannabis had been reached between the country's ruling Labour party and the Green party as part of a confidence and supply arrangement.

The Green's drug law reform spokesperson Chloe Swarbrick welcomed the news of a referendum, saying they'd been working towards such a vote for many years.

She observed: "We’ve had countless opinion polls for decades now, confirming New Zealanders are positively well ahead of political action on the issue of cannabis law reform.

"This binding referendum presents an opportunity to have the will of the people trigger meaningful legislative change."

A recent report by New Zealand's Drug Foundation has suggested that decriminalising and regulating cannabis could raise an additional $240 million (€145 million) in tax every year.

Earlier this year, Canada became only the second country - after Uruguay - to fully legalise recreational cannabis sale and use, although many other countries have decriminalised use of the drug.