The Papua New Guinea government has given in to Fiji demands and its high commissioner, Peter Eafeare, has turned down his appointment as dean of the Suva diplomatic corps.
Fiji protested late last year at the appointment, causing Port Moresby to recall the high commissioner for consultations.
Mr Eafeare has now returned to Suva to resume his head of mission post.
The Post Courier newspaper reports that the prime minister Peter O'Neill and foreign minister Rimbink Pato were satisfied with his performance but they accepted Mr Eafeare should forego the deanship.
They says Mr Eafeare is well placed to determine how the nearly 20 million US dollars of election aid provided to Fiji by PNG should be spent.