The Vanuatu government says it has now reached a consensus over diplomatic ties with Taiwan.
The Council of Ministers last week opposed ties with Taiwan, announced two weeks ago, saying it contravened the coalition agreement, which backed a one China policy.
But a spokesman for the Prime Minister, Kal Moli, says the Council has changed its view after talks with the Prime Minister over the weekend.
He 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"