New Zealand's Chief Justice Dame Sian Elias has rejected a bid to have a high-profile court case heard in Tokelau.

It concerns two former Tokelau public servants who were fired last year for their role in the alleged misuse of millions of dollars of government funds.

The plaintiffs, Jovilisi Suveinakama and Heto Puka, wanted their case to be heard in Fakaofo atoll because they say it's an appropriate cultural setting.

They said say the case could resolve important constitutional, political and legal issues in Tokelau if it was heard there.

The pair are suing the government, Ulu Afega Gaualofa and New Zealand's Administrator to the territory, Ross Ardern, over their dismissals.

A hearing has been set for February.

In a High Court judgement from July, which was made available this week, Dame Sian didn't accept the plaintiffs' arguments.

She rejected claims they would face unreasonable costs if the case was heard in Wellington, because neither live in Tokelau.

Mr Suveinakama and Mr Puka launched legal action shortly after they were dismissed from government in November last year - on instructions from New Zealand - over their role in the purchase of two helicopters and a property in Apia, which together cost more than $US9 million.