James Tanis has rescinded his resignation as the Secretary for Bougainville's Department of Peace Agreement Implementation.
Mr Tanis resigned earlier this week amid concerns over funding and the struggles the agency faced in paying its bills.
But he now says he has reached an agreement with the Bougainville President John Momis to return to what is a key role as the autonomous Papua New Guinea province moves towards a vote on possible independence in June next year.
In a Facebook post Mr Tanis said "together we will pursue the resolution of outstanding issues in the administration, including the debts".
He apologised for "rocking the boat a bit".