The Papua New Guinea government's chief secretary says the University of Papua New Guinea will be paid the $US3.7 million promised to it by the government.
The university last month threatened to close unless the money was received to cover the cost of revising the 2016 academic year.
It has also spoken of passing the cost to students through fee increases as the government has not paid the money.
But the chief secretary, Isaac Lupari, has told the newspaper, The National, that there is no need for the university to pass on the burden to students and their parents.
Mr Lupari said the funding issue was discussed at a meeting yesterday with the finance secretary and university management.
He said the reason for the delay was because the public accounts were closed in the middle of December, but they will be re-opened again on Monday.