This comes after months of conflict at the regional institution between the governing council and the university management.
Fiji had allocated almost $US13 million in grants to the university for the current financial year.
Last week, the Chancellor and Nauru President Lionel Aingimea called for a special council meeting to determine the fate of two senior executives.
Mr Thompson held a press conference earlier this month and said he had accepted the decision by the council to exonerate Vice Chancellor Professor Pal Ahluwalia of misconduct allegations.