The Niue and Papua New Guinea governments are to finalise a grant towards the cost of building a new parliament in Niue during next week's Small Islands Developing States conference in Samoa.
Port Moresby has offered just over two million US dollars for the work.
The island's present Fale Fono, which is on an elevated coastal site, is said to be in a poor state because damage from Cyclone Heta ten years ago is still to be repaired.
Niue's Premier Toke Talagi told the Legislative Assembly he is extremely pleased with the assistance from PNG.
He has also been invited by the Prime Minister Peter O'Neill to visit PNG in November.