The construction will be completed in about a year at a cost of Rs 25 crore, Reddy said.
A 5.5 ft marble idol of Saibaba would be installed in the temple, which will have a hall to accommodate 500 persons, he said.
A Shri Saibaba Sansthan has been formed in Auckland with 1,100 Indians there being its members.
The trust is also planning to provide accommodation to Indian students who go to New Zealand for education, he added.