Nauru's President, Sprent Dabwido, remains committed to constitutional reform despite the narrow failure to pass legislation after the third reading this week.
For several years Nauru's MPs have debated changes designed to overcome a voting stalemate, and measures to increase transparency and accountability.
The legislation, which needs the support of two thirds of Parliament, failed by a single vote.
Mr Dabwido, who replaced his Cabinet this week in the hope this would ease the measure through, says he is still determined to make the changes but may have to take a different approach.
"What we will probably have to do is sit down with this government and look at other ways of trying to put the bill in and I think that we will probably break it up into different sections - good governance sections and probably financial sections and things like that. Putting in one bill at a time."