According to Gulf News report, Dubai-based Egyptian businessman Mohammad Fouad sued his wife, whose name has been suppressed, for injecting sperm into their Filipina housemaid's womb.
Mr Fouad said his wife carried out the procedure secretly, taking his sperm to the hospital where she worked, without his knowledge.
The couple met in the United Arab Emirates (UAE), and married in 2008 in Auckland.
The New Zealand woman found she could not conceive, and arranged with Fouad to have a baby through surrogacy.
Fouad said because surrogacy was illegal in the UAE, they decided to find a woman outside the country.
As the couple searched for a surrogate, the New Zealand woman hired a maid, who moved into the couple's home in 2010.
In March that year, the New Zealand woman asked for Fouad's sperm, and took it to her workplace at the hospital for "testing".
"She took the sperm on four separate occasions. A few weeks later I left for Egypt," Mr Fouad said.
When he returned, the maid was visibly pregnant, he said.
"I was aghast ... when [my wife] blurted out the truth. Here was my wife who had used my sperm to impregnate a woman she had hired to do our dishes. And she did it behind my back."
Mr Fouad claimed his wife had signed a contract with the maid, and tried to get him to sign it as well. He said he refused because it was illegal.
His wife allegedly told Mr Fouad she would make sure the baby was born in New Zealand to avoid prison time for the maid and the unborn child.
In December 2010, the maid gave birth to a baby girl at an Al Ain hospital.
When she gave the New Zealand woman a written consent to adopt the child, the Kiwi refused to take the child.
Mr Fouad said he got the child an Egyptian passport and sent her to a third family in Egypt.
"There was nothing else that I could have done as I cannot look after her on my own," he said.
"Since her biological mother is unmarried, the local health authorities refused to issue a birth certificate.
"Eventually I had to prove my paternity through DNA testing and get the certificate issued through the court."
New Zealand's Ministry for Foreign Affairs and Trade (MFAT) said it was aware of the case, but could not confirm "the veracity of the claims being made".
"The New Zealand consulate Dubai provided notarial services as part of a consent for adoption process," MFAT spokesman Adham Crichton said.
"It is not the function of New Zealand embassies or consulates to authorise surrogacy agreements."
Mr Crichton said the ministry could not release any more details for privacy reasons