The University of the South Pacific says it is to receive two point seven million (US) dollars a year for the next three years in funding from New Zealand.
It says the funding will support the core budget and programmes identified in a review of the future of the university.
The university says the funding agreement is spelt out in the first Memorandum of Arrangement to be signed between it and NZAID
The acting vice-chancellor, Professor Rajesh Chandra, says the three-year allocation, instead of annual allocations, will improve university planning.
He says NZAID has also committed three point four million US dollars to the Pacific Regional Initiative for the Delivery of Basic Education, or Pride, until 2006.