A weekend meeting of the Caledonia Together Party has decided for it to remain in government, thereby averting a fifth government collapse this year.
The decision follows disagreements over the attribution of portfolios at last Thursday's gathering of the new 11-member collegial government.
The Caledonia Together Party said the principle of collegiality, as expressed by the French prime minister, had been ignored and warned of a possible resignation.
A change to the electoral law is being finalised in France to end the political crisis, which started amid a yet unresolved dispute over which flag the territory should choose in its decolonisation process.
All of the territory's leaders are due in Paris next month to review the 1998 Noumea Accord as it is to enter its final phase, which calls for a possible referendum on independence after 2014.
