The New Zealand forestry minister, Jim Anderton, has offered Niue advice over its plan to enter into a logging deal with a Malaysian company.
Mr Anderton discussed aspects of the project with Niue cabinet minister, Bill Motufoou, in Wellington as the island's premier is keen for the venture to get started.
But Mr Anderton says there are a number of issues to be taken into account.
"Whether Niue will really benefit, whether there is any danger to the indigenous forests, whether there is sufficient volume to make it viable and what kind of benefit will this be to Niue in the long haul and not just the short term."
Mr Anderton says the project is a long way from being a complete deal.