Palau's president Tommy Remengesau has vowed that his nation's diplomatic ties with Taiwan will not change during his presidency.
Radio Taiwan International reports President Remengesau made the statement after the conclusion of his state visit in Taiwan.
He said that Palau's ties with Taiwan would not change while he is in office.
President Remengesau's term will end on 2008.
Taiwanese President Chen Shui-bian meanwhile thanked Palau for their support for Taiwan's bid to become a member of the United Nations and World Health Organisation.
President Chen said Palau was a known diving destination to Taiwanese tourists and that Taiwan has been the top source of tourism for Palau for the past three years.
Palau is among the six Pacific countries which have a formal diplomatic relationship with Taiwan.
The other countries include Republic of Marshall Islands, Nauru, Tuvalu, Solomon Islands and Kiribati.