The New Zealand Government is considering withdrawing funding to Nauru in the wake of the sacking and deportation of the country's only magistrate and the barring of its Chief Justice.
Peter Law was sacked, arrested and forcibly taken to the airport to return to Australia on Sunday.
The Nauru government also cancelled the visa of Chief Justice Geoffrey Eames, who wanted to return from Australia to sort out the matter.
Foreign Affairs Minister Murray McCully says funding for the Nauru legal system, which the Government has supported since 2003, will be reviewed if the spending does not meet its objectives.
Mr McCully says the Government expected to provide up to $1.2 million in funding to the Nauru judicial system this year.
The ministry says officials will visit Nauru next week.