The Chief Minister of the Northern Territory says he is holding out for an education deal that will not push the Territory further into debt.

Northern Territory Chief Minister Adam Giles said an overnight meeting with the Prime Minister has not provided any answers on how the plan could be implemented without deepening the $5.5 billion debt inherited by the new government.

Mr Giles said he was not prepared to spend another $106 million, which would be the Territory's projected contribution to the Better Schools scheme.

The Northern Territory has its own distinct educational problems and needs, according to the Chief Minister; “We have fundamental issues in education where we've got to improve school attendance... we've got to improve standards in teaching, work with the principals in schools that we have at the moment and get better educational outcomes.”

"Is money the solution? I don't know if it actually is, but I can tell you what's not the solution, and that's not putting the Territory into more debt than it is currently in to fund something that is going to take us 10 to 20 years to pay back," Mr Giles said.