Acting New Zealand High Commissioner Caroline McDonald will be expelled from Fiji with an announcement expected later today.

This has been confirmed by a senior government official after Interim Prime Minister Frank Bainimarama and New Zealand Foreign Minister Murray McCully spoke over the phone last night.

The senior government official has confirmed that Commodore Bainimarama has stressed to McCully that the Acting New Zealand High Commissioner and the staff of the New Zealand Embassy are the ones who have been giving reports to their New Zealand counterparts about those who are related to the military and the interim government and whose visas must be rejected.

According to the senior government official, Bainimarama stressed to the New Zealand Foreign Minister that if sanctions were to continue, that it must only be on the military and the interim government members but not their family as they do not know anything and have no part in Fiji's situation.

Meanwhile, the New Zealand government said it is maintaining a diplomatic stance as the standoff with Fiji continues.

Newstalk ZB reported that NZ Foreign Minister Murry McCully will not say whether New Zealand will respond in kind if Fiji plays hardball and proceeds with its threats to expel Acting High Commissioner Caroline McDonald.

McCully said NZ's position has been spelled out and further discussions will take place.

However, McCully said at this stage, he does not know whether he will talk to Interim Prime Minister Commodore Frank Bainimarama again today.

Meanwhile, the chairman of the New Zealand Pacific Business Council said the NZ government must persevere and get the country's relationship with Fiji onto much better footing.

Gilbert Ullrich told Radio NZ that trade worth $300 million is at risk if the government does not shore up its relationship with Fiji and stressed that they must take a fresh view over Fiji as the former Labour Government's approach was wrong.

Ullrich said Foreign Minister Murry McCully has to listen to the interim government in Fiji rather than tell it off over its political situation.