One of New Zealand's major technology and education powerhouses is consolidating its city links with Qingdao, a coastal city of Shandong Province.

A high-level delegation from the city of Qingdao, in Shandong Province, arrived in the South Island's second city of Dunedin on March 10 to sign a formal Friendship City Agreement.

The six-person delegation led by Qingdao Vice Mayor Wang Guangzheng includes Municipal Bureau of Education Vice Director-General Li Min, said a statement from the Dunedin City Council.

Li would meet with officials from the Dunedin-based University of Otago and Otago Polytechnic with a view to establishing relationships with Qingdao University and China Ocean University.

Dunedin Mayor Dave Cull said in the statement that the agreement would further strengthen the growing relationship between the two cities.

In August last year, Dunedin and Shanghai celebrated the 20th anniversary of their sister city relationship, which Dunedin officials have credited with giving their city a much-needed economic boost.