Maori Affairs Minister Pita Sharples says he believes there was Cabinet support for Tuhoe's proposed Treaty settlement.
On Monday, Prime Minister John Key ruled out Tuhoe's central demand for the return of the Urewera National Park, saying it was a step too far for most New Zealanders.
The decision has left the Crown's negotiations with Tuhoe deadlocked.
Dr Sharples says he has been assisting the Treaty Negotations minister Chris Finlayson with the Tuhoe settlement.
He says the rug was definitely pulled out from under them with Mr Key's announcement on Monday, and he is not sure where negotiations will go from here.
Dr Sharples says he expects to meet Mr Finlayson next Monday to discuss the situation.
The relationship with Tuhoe was further strained by a joke made by the Prime Minister about being eaten by Tuhoe. Mr Key on Thursday apologised and added he still thinks a deal can be struck.
Tuhoe willing to continue talks
Tuhoe says it is willing to continue negotiating a settlement deal with the Crown but doubts any credible options can now be presented.
Spokesperson Tamati Kruger says other options such as co-management of the national park have already been discussed, and rejected, by his iwi.
Mr Kruger told Morning Report he has had some contact with the Crown's chief negotiator to say a time should be fixed to meet in the near future, and plans to suggest a meeting date some time next week.
Mr Kruger said he was wondering who he is negotiating with - and that perhaps he should just negotiate with the prime minister.
Asked whether he would invite him to dinner to do that, he joked "not yet".
Don't over-react to joke, says Piripi
A leader of Te Rarawa iwi in the Far North says it will be unfortunate if people over-react to the Prime Minister's dinner quip.
Haami Piripi , a former head of the Maori Language Commission, says he wouldn't regard Mr Key's remark as a serious insult.
"Isn't that a 'New Zealander-ism? If it was me, I would find that a remark of familiarity.
"Only a person who was fairly familiar with me would make a remark of that nature and if they did I would take in in the humour in which it was intended."
