Rice was due to arrive in Auckland late Friday ahead of talks set for Saturday with Prime Minister Helen Clark and Foreign Minister Winston Peters.
Auckland University Student Association (AUSA) president David Do said the reward of $5,000 NZ ($3,725 US) was being offered for Rice’s arrest for her role in “overseeing the illegal invasion and continued occupation” of Iraq.
“We thought we’d give our students a chance to make a dent in their student loans and work for global justice at the same time,” Do said.
Police said any attempt to make a citizen’s arrest could lead to “very serious consequences”.
“I would strongly advise the association representatives who’ve put this challenge out, to withdraw it immediately so as to avoid being caught up in something much bigger than they may have anticipated,” said Auckland district commander, Superintendent Brett England.
Rice is due to leave New Zealand on Sunday for Samoa, where she will hold talks with foreign ministers from the 16-nation Pacific Islands Forum.