Australia and Papua New Guinea will hold urgent talks next week over asylum seekers held at an "illegal" detention centre on Manus Island.
Papua New Guinea's Supreme Court ruled this week that the facility was unconstitutional.
Australia sends asylum seekers there under its offshore processing policy.
Papua New Guinea's high commissioner to Australia Charles Lepani said the detainees were Australia's responsibility.
Australia has remained opposed to taking any of them.
Immigration Minister Peter Dutton said on Thursday there was room for them at another detention centre on Nauru.
"There's capacity [on Nauru] but we're talking with the PNG government about what options are available in PNG and we'll continue those discussions with them," Mr Dutton said on Sky News.
This comes after an Iranian asylum seeker held at the Australian-funded detention centre on Nauru set himself on fire on Wednesday.
His actions were a "political protest" according to the Nauruan government.
Mr Dutton said the 23-year old man was in a serious condition and was evacuated to Australia for treatment.
Nauru is a small Pacific Island nation about 3,000 km (1,800 miles) north-east of Australia.
It was previously administered by Australia but gained independence in 1968.
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