Ambae's Manaro Voui crater is at alert level three of five, posing a threat to the health of the island's inhabitants, who are being encouraged by the government to evacuate.
The crater on Mount Lombenben began erupting in September last year, prompting a short term evacuation.
It intensified last month, forcing the government to announce a state of emergency.
The Vanuatu Daily Post reported Ambae's paramount chief, John Tarilama, requested the land from Santo's council during a recent traditional ceremony organised by the Malvatumauri National Council of Chiefs.
