Vanuatu's Police Minister Andrew Napuat stirred ructions in Canberra after flagging Port Vila was chasing a memorandum of understanding with China about policing after he visited Beijing.
Pacific Minister Pat Conroy played down Mr Napuat's comments, saying they were from "one particular minister weren't a surprise" as Australia tries to finalise its own security agreement.
Mr Conroy said he respected the sovereignty of Vanuatu, adding the desire to formalise a small Chinese policing presence wasn't a surprise to Australia.
Mr Napuat has hit back at Mr Conroy's comments.
"These are the kind of of comments that are made by our friends that shows the arrogance and ignorance of what we are stating as a government," he told ABC Radio.
"He needs to respect the internal processes that are happening here, and then he needs to get his facts correct, to understand that what we are deciding on as a government.
"The decisions that we are making is not a decision that comes from a single minister. It is a decision that we are making collectively as a government."
Sources familiar with the situation, but unable to speak publicly because of diplomatic sensitivities, said the comments were taken out of context and Mr Conroy didn't single out the minister or imply he was at odds with his government.
Mr Napuat said a memorandum with China was needed to map out the rules of engagement with local police forces, although no timeline has been attached.
Beijing already had a policing presence on the ground but the memorandum wasn't "normalising some kind of permanent presence whatsoever", Mr Napuat said.
"We're saying it will provide clarity on what certain partners are doing with us, how we are addressing the needs of the Vanuatu police force with our different partners."
Vanuatu had also been upfront with Australia about signing a memorandum, he said.
Australia has stated there is no role for a Chinese security presence in the Pacific, saying such issues can be resolved by a regional response.
It continues to sign and pursue pacts with Pacific nations that effectively include veto or exclusivity clauses preventing China from co-operating in the security and critical infrastructure spaces.
The $500 million Nakamal agreement with Vanuatu fell over at the last minute over concerns it would block other countries providing development funding.
Australia remains confident an agreement will be reached, and while the text hasn't been made public, there's believed to be a significant security element to the deal.
Similar Australian agreements with Nauru and Papua New Guinea effectively lock China out.
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