The Vanuatu government says it has now reached a consensus over its diplomatic ties with Taiwan.
The Prime Minister, Serge Vohor, will give a formal public address today to outline the new relationship with Taiwan.
The Council of Ministers was opposed to ties with Taiwan because of the government's current relationship with China.
But a spokesman for the Prime Minister, Kal Moli, says establishing ties with Taiwan is in the best interest of the country.
"The concern for the differences that the Vanuatu government and the ministers had, has been resolved with close consultations with the prime minister over the weekend. And at the moment, the Prime mInister will be making a final decree to formally confirm our position on Taiwan."
Kal Moli says Vanuatu wants to be the first country to maintain ties with both Taiwan and China.