The New Zealand government has suspended its funding for Nauru's justice sector.
The government had threatened to cut its aid to Nauru amid concerns about democratic rights and the rule of law in the Pacific island nation.
Foreign Minister Murray McCully says the aid has been put on hold and he will continue to talk with the Nauruan government to try and find a way forward.
New Zealand provides about $NZ1.2 million ($A1.1 million) a year to keep Nauru's justice system going.
New Zealand's other aid to Nauru isn't affected by the decision.
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