Australia and Nauru have signed an agreement under which Australia will provide a senior treasury officer and officials from the finance department to help Nauru reorganise its finances.
This comes as an American finance company has moved to recover Nauru's debts of 170 million US dollars.
Nauru's President Rene Harris and the finance minister, Kinza Clodumar, struck the deal with Australia's foreign minister Alexander Downer in Melbourne.
Reports say under the deal Australian officials will be granted immunity, but Mr Downer says there is no talk of giving Nauru further financial aid.
But he says once Australia has a clearer idea of Nauru's net financial position, discussions will be held about what else might need to be done.
A Nauru spokeswoman says a lot of Nauruans are suffering as many people have not been paid.
