The United States has diplomatic relations with Vanuatu, which has a population of 319,000 spread over 80 islands, but is currently represented by diplomats based in New Guinea.
The United States reopened its embassy in the Solomon Islands this year after a 30-year absence and the latest State Department announcement follows a visit this month by US Indo-Pacific coordinator Kurt Campbell to the region, including Vanuatu.
Other US embassies are planned in the Pacific island nations of Kiribati and Tonga.
Despite diplomatic pressure, the Solomon Islands announced this month that it has awarded a multimillion-dollar contract to a Chinese state company to upgrade an international port in Honiara.