Papua New Guinea has provided funding to Palau to help it host this year's Pacific Islands Forum Leaders Summit.
The 45th summit will be held from July 29 to the 2nd of August on Palau's Koror Island.
Palau's President, Tommy Remengesau, approached PNG to help fund the hosting of the summit and Prime Minister Peter O'Neill has provided just over 220-thousand US dollars.
Mr O'Neill says Palau faces many challenges, including its reliance on foreign aid and the threat of rising sea levels.
He says as PNG has the largest economy in the region, it must be ready to support its neighbours when called upon.
Peter O'Neill says he expects some of the issues to be discussed during the Leaders' Summit will include climate change, transnational crime and labour mobility.