A New Zealand court has ruled the little girl found abandoned at a Melbourne train station last month will live with her grandmother in China.

Qian Xun Xue, who became known as Pumpkin, will travel to China to live with Xiaoping Liu, although half-sister Grace Xue will have some rights to contact the child.

Judge Peter Boshier from the Auckland family court today described Qian\'s circumstances as utterly tragic.

I hope that for the family sadness can now be replaced with hope and peace, Boshier said.

The judge adjourned an application to remove guardian rights to Qian\'s father, Nai Yin Xue, who has been accused of abandoning his daughter and killing her mother.

I will consider the documentation further and then give directions as to how I wish that particular application be proceeded with,\'\' Boshier said.

Under the judge\'s ruling Grace Xue will be have contact with Qian via email, telephone and the exchange of photographs.

Qian also will be able to meet Grace Xue when in China, or when she is in New Zealand.

I can think of no better solution than to let her be nurtured and loved by her grandmother,\'\' the judge said.

It is important to acknowledge at the outset, to those members of the family who are present today, the utterly tragic circumstances that have required this court hearing to occur.

Above all else, I acknowledge the sadness of the circumstances that bring us here today,\'\' he said in his written decision.