The mothballed Niue Fish Processing plant will stay closed into next year at least, with any re-opening dependent on additional funding provided by the Niue Government.
The New Zealand based Reef Group built the fish factory two years ago but shut it down late last year.
In March Reef's managing director, John Gresson, called for New Zealand, as Niue's main aid provider, to help offset the establishment costs and meet the island's commitments as a joint venture partner.
The acting Niue Premier, Fisa Pihigia, says New Zealand had made an offer to Reef but he says the company now feels it is too late to re-open for this fishing season.
Mr Pihigia says he remains hopeful the plant will re-open next year.
"Well I am confident that if New Zealand continue on with what has been proposed by the Prime Minister to find a way of assisting Niue and Reef in this joint venture, I believe it will happen next fishing season."