The leaders held their talks on a large wooden catamaran anchored on the beach of Tapuaetai, a small island near Aitutaki.
Despite some speculation the forum would reconsider Fiji's suspension after recent progress there, Mr Key said it was decided that no major change, such as lifting the temporary ban, would happen until after democratic elections were held.
One issue was the question of immunity for the military involved in the December 2006 coup.
"One of the reasons not to reinstate is because of serious questions such as what happens to the military and whether they are sent back to the barracks."
The new forum chairman, Cook Islands PM Henry Puna, said NZ and Australia's renewed engagement with Fiji was encouraging.
He would not say whether some leaders had argued against the stand on the suspension during discussions, but said it was the position all agreed on.
"The integrity of the forum must be maintained."
Mr Puna said most of the discussion by the leaders focused on fisheries - the theme of this year's forum is the ocean.
Earlier in the day, Mr Key announced New Zealand was boosting its support funding for Pacific fisheries by $10 million to $50 million over the next three years.