Vanuatu's Geohazards Department says the Ambae volcanic activity has become more stable and it has lowered the alert level from three to two this week.
It said while the volcano remais in a major state of unrest, the observations from May confirm that heightened activity between March and April has now dropped.
The agency said there were no current explosions and the volcanic cloud had become white in colour indicating more steam and less ash.
The presence of ash on Ambae from the recent eruptions will continue to change the behaviour of streams and creeks during heavy rain with the potential for flooding as waterways carry more debris.
The danger zone is now two kilometres around the volcanic vents and the possibility of the Ambae volcano activity escalating to the level of minor eruption is moderate to low.