The Vanuatu Government will immediately resume funding to the Pacific Mini Games Organizing Committee after crisis meetings with the Pacific Games Council.
It comes days after the Games Council said active disruptions from within the government were threatening the country's ability to host the 2017 Games.
The Van2017 Organising Committee was forced to postpone major initiatives, including sponsorship announcements, after the government withheld funding that had been promised through the host contract and demanded a completely new governance structure.
Pacific Games Council CEO, Andrew Minogue, met with the Vanuatu Prime Minister, Charlot Salwai, as well as a number of other senior government ministers, on Friday.
The Government has since taken action to enable the immediate resumption of funds to the Organising Committee and reaffirmed its commitment to abide by the host contract agreement.
Van2017 Chair Mark Stafford said valuable time and momentum had been lost in recent weeks and he hoped that the Government will now follow through to deliver what they have promised.
The Pacific Games Council and Vanuatu Olympic Committee say they will closely monitor the funding situation going forward.