The Carcross Tagish First Nation said there is nothing new in an offer from the Department of Aboriginal Affairs and Northern Development.

Minister John Duncan's office said it has offered to increase the Yukon First Nation's funding by $1.6 million. His office also said they will not cut off funding as of Oct. 1, as long as they can reach an interim agreement with the First Nation.

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Dan Cresswell said his First Nation wants what is fair - a government-to-government negotiation to reach what he calls a fair funding agreement. (Heather Avery/CBC)

In a release today, Carcross Tagish chief Dan Cresswell said that interim arrangement will only ensure his First Nation faces more hardship.

"An interim agreement is unacceptable. Our First Nation is already struggling because it is extremely underfunded. We want the Harper government to come to the table now, and participate in equal government-to-government negotiations just as it does with provinces and territories. We only want what is fair," said Cresswell.

The First Nation became a self-governing nation in 2006.