Vanuatu's Council of Ministers has authorised the government to secure permanent resettlement for Ambae's 11,000 people by the end of May.
The Daily Post newspaper reported the Council of Ministers also admitted the constant ash fall from the island's Manaro Voui volcanic crater is beyond its capacity, and has forced them to seek international help to response fund.
The council also gave its assurance that all emergency funds will be processed through the National Treasury.
The government has for the first time admitted that families on Ambae are struggling to live due to the heavy volcanic ash fall.
Initially the ash fall affected the south and western part of the island, but due to wind changes, it has spread through the north and eastern part of the island as well, destroying food sources and other vegetation.