The Manaro Voui crater on Mount Lombenben which began erupting in September last year, prompting a short term evacuation, intensified last month, forcing the government to announce a state of emergency.
The minister, Andrew Napuat, said Ambae's population of about 11,000 people were being encouraged to leave the island voluntarily.
A request for land for the islanders had prompted a good response from neighbouring islands, like Santo, Maewo and Pentecost, Mr Napuat said.