Kaniva News reported Steven Caldwell had been given another two years to oversee the local force after the extension was approved by the Privy Council last week.
His contract expired on 14 April.
However, the Minister of Police, Mateni Tapueluelu, said the government believed Mr Caldwell was no longer fit for the job.
Mr Tapueluelu said the government had not asked the New Zealand government to activate its funding aid scheme which pays for the majority of the Commissioner's salary.
