The fate of more than 800 asylum seekers on Manus Island remains uncertain as Australia and Papua New Guinea toss up what to do after formally agreeing to close the immigration detention centre.
The federal government is adamant the men will never make their way to Australia - so should settle in PNG or return to their country of origin.
"People from Manus will not be settling in Australia - I've made that clear and the PNG government accepts that," Immigration Minister Peter Dutton said on Wednesday, after holding talks with PNG Prime Minister Peter O'Neill in Port Moresby.
There's no official timeline for the closure with Mr Dutton saying it's an issue for PNG, which is set to get a substantial payment to wind it down.
"It will take years to clean up this mess," Mr Dutton said, adding he hoped the centre was shut as soon as possible.
Mr O'Neill said he's satisfied officials from both sides were making progress but stressed the closure shouldn't be rushed.
Mr Dutton said the government agreed to the closure because asylum seeker boats have stopped.
"One of the dividends of stopping boats is that we can close detention centres," he said.
However, the processing centre on Nauru would remain open as an important deterrent to boat arrivals.
"We need a regional processing centre because we know it is one of the main tools that helps to stop people smugglers selling tickets," the minister said.
Federal Labor is demanding the government find third-party settlement options, and if refugees were to be settled in PNG, to detail which services like education and housing they'd get.
"We need a viable solution ... the government needs to process these people," immigration spokesman Shayne Neumann told AAP.
The Greens want the men on Manus to be relocated to Australia, saying the decision spells the end of offshore detention.
"Manus has to close, Nauru is in meltdown and offshore detention is in freefall," immigration spokeswoman Sarah Hanson-Young told AAP.
The PNG government announced in April the centre would close following a decision by the Supreme Court that found it to be unconstitutional.
