A showdown is looming in the Fiji Labour Party between Mahendra Chaudhry and the five senior MPs who have questioned his leadership.
This follows President Iloilo's decision to accept Mr Chaudhry's list of Labour Party nominees to the Senate.
A statement from Government House says recent events in the hierarchy of the Labour Party had not altered Mr Chaudhry's status as it leader.
The statement said that "it was as parliamentary leader of the Labour Party that Mr Chaudhry had tendered names to the prime minister for inclusion in the multi-party cabinet."
The statement said "subsequent events had in no way altered that status" and President Iloilo acted accordingly.
Mr Chaudhry told the Daily Post from Sydney last night that he was pleased with the president's decision.
He said it was ridiculous of anyone to question his leadership and the five senior party members, including cabinet ministers Poseci Bune and Krishna Datt, who did so would have to pay the price for undermining party solidarity.
Mr Chaudhry is due to return to Fiji today.