Solomon Islands is pushing ahead with plans for a new internet cable despite reports the link could be in jeopardy because the Chinese telecom firm Huawei is involved.
The Solomons needs to apply to have the submarine link land in Sydney but Australia is reported to be concerned about the deal with Huawei.
The Sydney Morning Herald reported last month that Australia was concerned at the involvement of Huawei which was earlier banned from working on Australia's National Broadband Network on the advice of the country's security agency.
Canberra said Australia had been in discussions with Solomon Islands for a number of months about applying for a permit to land the cable in Sydney.
A statement from the office of the Solomon Islands prime minister said the government remained positive that concerns will be resolved amicably.
The Asian Development Bank last year withdrew $US18 million dollars in funding for the project, as the selection process did not meet the bank's procurement guidelines.
Honiara is considering all options to make faster more affordable internet a reality.