The women reportedly tried to end their lives because they believed their orphaned children would be allowed to settle in Australia, Fairfax Media has reported.
Fairfax quoted sources who have confirmed the women attempted self harm after being told they would be taken to Nauru or Manus Island.
Tony Abbott described the report as “harrowing” but said the government would not back down on its asylum seeker policy.
Speaking to Channel Nine this morning, Mr Abbott said the government continued to comply with legal obligations.
“If true, it is a harrowing tale," he said.
“We are going to stop the boats, we are going to maintain our policies... This is not going to be a government which has our policy driven by people who are attempting to hold us over a moral barrel.
"I don’t believe any Australian, any thinking Australian, would want us to capitulate to moral blackmail.”
His comments follow action by the High Court to temporarily bar the return of 153 asylum seekers to Sri Lankan authorities.
In the High Court yesterday, the government pledged to give three days notice before trying to return the group.
The group, which includes children as young as two, was intercepted at sea en route to Australia but won't be processed under the Migration Act because they never entered territorial waters.
The asylum seekers are being held aboard a Customs vessel outside Australian territorial waters, but on Wednesday Mr Abbott refused to confirm their exact location.
Calls for judicial review
Greens Senator Sarah Hanson-Young described the developments as “Tony Abbott’s Tampa” overnight ahead of calls from the United Nations for a review into Australia’s treatment of asylum seekers.
UN spokeswoman Ravina Shamdasani said a wide-ranging judicial review was called for.
“We understand that since their interception more than a week ago, the individuals on this vessel have not been able to make contact with family members or refugee organisations,” she said.
“We hope the matter will be subject to a full judicial review in light of Australia's obligations under international law.”
She said among the areas that need checking were whether Australia respects the principle of “non-refoulement” or the not turning away a refugee without a fair hearing, a key tenet of the 1951 Refugee Convention.
People seeking suicide prevention and support can contact:
Lifeline 131114
Beyond Blue 1300 224 636
Kids Helpline 1800 55 1800
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