Last week the Games Council said active disruptions from within the government were threatening the country's ability to host the Games and sponsorship announcements were postponed after the government withheld funding.
But CEO Clint Flood said the government has confirmed their commitment through legislative changes which had been waiting to be passed by Parliament for four years.
"Through a Parliamentary Act, they've actually put a mechanism in place which allows us to be administered properly and they have recognised the role formally now of an Organising Committee," Flood said.
"So that at least allows us the basis for money to flow and the basis for decisions to be made without the direct interference, if you will, of a government department. It needs to go through this specific Games Authority."
Flood said the move is an extremely positive step for Games preparations for the event which is scheduled to take place in 358 days.
However he concedes the funding confusion has pushed preparations a month behind schedule.
Flood said it is now full steam ahead with the venue and sports plan being addressed.
He said the sponsorship and commercial plan now needs work.
"We have got to go back and reconfirm with the sponsors that their programmes we offered them will still be on offer. It is difficult but it is a matter of making sure that they have confidence," Flood said.
"I have a great [deal] more confidence today than I did last week that the government is with us."
Flood said the Games' Agreement and subsequent legislative changes should be able to outlast any political changes and provide stability.
Just this month Vanuatu's parliament has received two motions of no confidence in the government.
Radio New Zealand