The Governor of Madang Province in Papua New Guinea says Manam Islanders may soon be resettled, with 7 million US dollars worth of funding made available by the Deputy Prime Minister Leo Dion.
About ten thousand people were displaced after the Manam volcano began erupting more than five years ago but efforts to permanently rehouse them have so far failed.
According to the Post Courier newspaper Governor Jim Kas says the money will go a long way in advancing the resettlement of the islanders at Andarum in Madang's Bogia District.
Meanwhile there are reports of increased volcanic activity on Manam and the remaining 1000 islanders may need to be evacuated.
The acting Director of Provincial Disaster and Emergencies, Rudolf Mongalle, says ash-fall had slowed down but the lava flow from the main crater had intensified.