The Nauru government says allowing Australia to re-open a detention camp for asylum seekers is about providing help, where it can, to the island's main aid donor.
Both governments have agreed camps which operated from 2001 until 2007 and processed hundreds of people, most of whom were eventually declared legitimate refugees, can re-open.
This could happen within a month with officials from Canberra to travel to Nauru later this week.
Nauru's foreign minister, Dr Kieren Keke, says there has been no discussion on Australia increasing its overall aid assistance.
"There has been ongoing significant funding and assistance from Australia. There is no denying that there will be some benefits in terms of jobs available for Nauruans that would be employed with the centre and the flow on economic benefit from the increased activity that the centre will provide, but it has not been the driver of our decision to provide assistance to Australia."
Nauru's foreign minister, Dr Kieren Keke.