A state of emergency has been lifted in Nauru following the re-election of Marcus Stephen as president.
A former president, Ludwig Scotty, accepted a nomination to be Speaker, giving the government the majority it has sought since February.
Elections in April and June failed to resolve the parliamentary deadlock, and emergency provisions were imposed in June.
A spokesperson for the government and President, Rod Henshaw, says removing the state of emergency was Mr Stephen's first priority following his re-election
"Under the state of emergency the country has been functioning normally, the funding has been there and wages have been paid, hospitals have been continuing and education has been continuing so there hasn't been any visible or tangible impact on Nauru. But constitutionally, legally I suppose and also in terms of transparency, it's good to have the parliament now back in action."
Rod Henshaw says Ludwig Scotty was elected as speaker unopposed, and has said he will act independently and evenhandedly with both sides of parliament.