The Prime Minister, John Key, says it looks inevitable that Fiji will be suspended from the Pacific Islands Forum next month.
Fiji is in political turmoil, with the military regime of Commodore Frank Bainimarama continuing to strengthen its grip on power.
John Key says the situation is unacceptable, but inevitable.
Fiji was given a May the first deadline by the Pacific Islands Forum to set a credible date for elections.
Mr Key says his understanding is that suspension will be automatic unless an election date is set, and there appears to be virtually no chance of that.
However, he says the Government is unlikely to impose further economic or trade sanctions.