The federal government will not appeal a landmark human rights ruling that found it discriminated against children on reserves in its funding of child welfare services.

The Canadian Human Rights Tribunal decision handed down last month said First Nations are hurt by the level of services provided by the government and, in some cases, denied services as a result of the government's involvement.

The government said today it would not seek judicial review of the judgment.

Some have suggested it will cost hundreds of millions of dollars to rectify the welfare situation.

Justice Minister Jody Wilson-Raybould says the ruling shows the present system is failing.

She calls that unacceptable in this day and age.

"This government agrees that we can and must do better," Wilson-Raybould said in a statement.

"We believe that this decision is pointing us in the right direction, as a country, and we will not seek a judicial review of the decision. This is part of the new relationship and spirit of reconciliation that our government is committed to."

The tribunal found the federal government failed to provide the same level of child welfare services that the provinces provided off-reserve and as a result, countless First Nations children have ended up in foster care, away from their families.