New Zealand withdrew the justice aid of $US878,000 in 2015 amid concerns about the independence of the judiciary.
Nauru was unmoved by New Zealand's actions and a former Nauru secretary of justice, David Lambourne, said at the time Nauru was mocking New Zealand.
He said the rule of law on Nauru had broken down and called for stronger international action.
A New Zealand Ministry of Foreign Affairs spokesman said New Zealand had since been encouraged by progress Nauru has made in relation to civil and political rights, but it had not discussed its concerns about the independence of the judiciary.
In total New Zealand's annual aid to Nauru is now $US3.6 million and none of this goes to the justice sector, but rather to renewable energy and education.
Nauru effectively bans journalists by requiring a prohibitively large visa application fee and the MFAT official said the island's hosting of the Pacific Islands Forum next year would be a chance for it to demonstrate it embraces an independent media.