France and New Caledonia have committed to give Vanuatu 640,000 US dollars as part of a regional development programme signed in Noumea.
The key investment will be on Pentecost island to renovate its health centre.
The deal was signed by the visiting prime minister, Sato Kilman, New Caledonia's president, Harold Martin and France's Port Vila-based ambassador, Michel Djokovic.
Mr Kilman says the French presence in the Pacific is not only important for Vanuatu, but for the entire region and the international community.
Vanuatu is the only French Pacific territory which has been decolonised.