The Council was formally advised of the government's decision to pull out on Wednesday, because of financial concerns, five days after the move was approved by cabinet.
The Pacific Games Council said it was not consulted in the decision and no attempt was made to seek their assistance to address the Government's financial concerns over staging the Games.
"We have a contract that we signed in 2012, when our General Assembly awarded Tonga the Games and there are termination and suspension clauses in the contract," said Council CEO Andrew Minogue.