The New Zealand foreign minister says at this stage aid to other areas in Nauru won't be affected by the suspension of funds to its justice sector.
Murray McCully halted $1.2 million worth of aid over concerns around the integrity of Nauru's judiciary.
Opposition MPs are currently suspended from parliament and a number of them are facing charges after public protests over alleged government corruption.
Nauru has said New Zealand is interfering in the affairs of a sovereign nation.
But Mr McCully says Nauru's government had assured him that they would work with New Zealand to restore international confidence in the justice sector after two Australian judges were sent packing.
He says recent events shows that has not happened.
"We're involved in a discussion at the moment to try and ascertain where things are going to track from here. Sadly the trends in the last few weeks haven't shown improvement but we remain hopeful."