Port Vila Mayor, Eric Festa, said there was no longer space for burial at the local cemetery.
The government is currently negotiating for land outside the municipal area but Mr Festa said there was a need for a quick solution.
"So far we have no more space so I want to bury people at the parking area, because we have no space, so we have no choice.
"We are going to start to use the parking area to put our old people there to rest in peace."
Mr Festa said a last resort would be to begin to share plots where existing people were buried but he would be reluctant to go down that route.