Allegations towards an Australian journalist by Fiji's Media Industry Development Authority has led to a media training project in Fiji being dropped.
The tension is reportedly due to a confrontation between MIDA chairman, Ashwin Raj, and MIDA director Matai Akauola and ABC journalist, Sean Dorney, at last month's Pacific Media Summit in Noumea.
Mr Raj and Mr Akauola are accused of criticising Mr Dorney over his coverage on Fiji media rights.
Mr Dorney is barred from Fiji.
MIDA released a statement saying it will clarify this week a complaint it made with the ABC regarding one of its correspondents.
A decision has been made by the Australian government-funded Pacific Media project, PACMAS, to withdraw the project.
The planned training project may be relocated to either Tonga or Samoa.