The Isle of Man government says it has been in 'regular contact with Tesco' over the supermarket giant's Shoprite buyout.
The authority says it is also working with local businesses that supply Shoprite to make 'transitional arrangements' whilst post-sale details are finalised.
All nine of the island's Shoprite stores have now been purchased by Tesco - bringing an end to 51 years of trading for the chain which was founded in 1972 by the Nicholson family.
The news was announced on Monday and saw a 'number of Shoprite staff' being put at risk of losing their jobs as a result of the sale.
All nine stores will continue trading under the Shoprite brand name in the short-term before transitioning gradually to Tesco shops over the next nine months, according to a joint statement from both firms.
However, there are fears on the impact the buyout could have on Manx food producers now the largest independent grocery retailer on the island is set to disappear.
The Manx NFU has raised concerns over the deal, saying it posts a 'significant risk' to the Isle of Man's food production in a lengthy statement released today - you can read the statement in full here.
A spokeswoman for the government said: ‘The Isle of Man Government is committed to continuing to work with the MNFU and all Manx producers, suppliers and distributors, with supporting transitional arrangements for those who currently supply Shoprite and Tesco being a primary focus.
‘Through the Department for Enterprise and Department of Environment, Food & Agriculture, the Isle of Man Government has been in regular contact with Tesco following their purchase of Shoprite earlier this week to understand the immediate impact on local staff and suppliers.
‘We are fully focused on working to ensure our local food and drink producers can continue to supply to their customers, and expect Tesco to share further updates over the coming days.’
In the wake of the announcement, Rob Callister, MHK for Onchan, revealed that he and 'others' had written to the government's chief minister, calling on Alfred Cannan 'not to bring forward' any plans that would see work permits for the Isle of Man removed.
MHK David Ashford, who represents Douglas north, also claims the government has had 'little or no say' on Tesco's purchase of all of Shoprite's stores because it failed to put in place regulations after passing the Competition Act - you can read more on that story here.
Tesco has also confirmed that its product pricing structure at the new branches will remain similar to that seen at its UK supermarkets - with a 'small fee' added on to goods to cover transportation costs.
The NFU fears the buyout could create a 'purchasing monopsony' on the island and drive down revenues for local sellers.