Wellington - Maori and ethnic European residents of the North Island city of Wanganui were at loggerheads Thursday over an official decision to put the letter "h" into the town's name to restore its original Maori spelling of Whanganui after 155 years.

Local member of parliament Tariana Turia, who is a co-leader of the Maori Party, dubbed it a "great day" for the city of 40,000 people and said tribal elders cried at the news that a historic wrong would be righted.

But the mayor, Michael Laws, who is of European origin, said the ruling by the New Zealand Geographic Board, which followed its decision 18 years ago to change the name of the river that flows through the city to Whanganui, was racist and would "destroy our culture and heritage."

The board confirmed an earlier preliminary ruling agreeing with a local tribe that the city was spelled incorrectly by British colonists in 1854 when they adopted the Maori name for the port city, 200 kilometres north of the capital, Wellington.

The ruling came despite a referendum in May in which 77 per cent of the city's voters favoured the status quo.

"In the end, we could not overlook the fact that Wanganui is not correctly spelt and it is a Maori name that is of significant cultural importance," board chairman Don Grant said.

"Historical evidence has shown that early settlers clearly intended the name of the city to be derived from the Maori name for the river, and consistent modern usage of the language showed the spelling should be Whanganui, not Wanganui," he said.

Laws said citizens were "angry, upset and disappointed" by the ruling, adding, "This council will fight for the democratic rights of its constituents."

The government's minister for land information, Maurice Williamson, will have the last word. "I may confirm, modify or reject the board's decision," he said, promising to carefully consider the issue and public submissions before deciding whether the "h" stays or goes. (dpa)