WELLINGTON - New Zealand Prime Minister John Key said Monday that the world is a safer place with the death of Osama bin Laden. Live report

US President Barack Obama announced the Al-Qaeda leader died in a firefight in Pakistan Sunday and the US was holding his body.

Key, speaking at the post-Cabinet press conference, welcomed the news, but warned bin Laden's death might not mean an end to terrorism.

"While his removal will not necessarily bring an immediate end to terrorist activity, I have absolutely no doubt that the world is a safer place without Osama bin Laden," he said.

"To all those families that lost a loved one as a result of the terrorist actions masterminded by bin Laden, they may well feel now that some of justice has been achieved," he added.

Key said New Zealand is working in countries such as Afghanistan to "make a contribution to ensure that the scourge of extremism and terrorism is reducing threats."

Phil Goff, leader of New Zealand's main opposition Labour party, also said the world would be a better place and bin Laden was responsible for the deaths of thousands of innocent civilians, TVNZ reported.