Fiji's tourism minister, Aiyaz Sayed-Khaiyum, has told FBC News that the owner of the Cloud 9 floating restaurant has agreed to withdraw a legal matter before the court.
The business was shut down earlier this month, but its owner, Tony Philp, had insisted he had all the official permits to run it near a world-renowned surfing area known as Cloudbreak in western Viti Levu.
However, Mr Sayed-Khaiyum said Cloud 9 was in breach of the Surfing Areas Decree 2010.
Mr Philp has now accepted the regime decision.
He has described the issue as a political hot potato, adding that Mr Sayed-Khaiyum will now help facilitate a move of the floating restaurant elsewhere.
Mr Philp says he hopes to re-launch Cloud 9 before Christmas with Mr Sayed-Khaiyum and the prime minister in attendance.