Chinese officials have reached agreement with the Niue Government to increase accommodation for tourists on the island.
The Premier of Niue, Toke Talagi, says China has been in discussions with his government and has decided to build an additional 40 rooms on the island by October next year.
The plans fits with the Government's desire to boost tourism, as outlined in the Hall Report, which was commissioned by New Zealand.
Mr Talagi says the plans could either involve the expansion of the island's only hotel, the Matavai Resort, or be a separate development.
"If we decide that those facilities can be put around the Matavai we will do that. But we haven't made a decision as to where we're going to build the resort, if you wish, or whether we should split it into two 20 room complexes and so on. But the timing at the present moment, the funds are there, as we understand it, the timing is there. It's just the engineering plans and the building that needs to be done."
Toke Talagi says at the same time, the government is waiting on New Zealand to decide how it will help.