Hundreds of detainees on Manus Island could soon be moved to "alternative detention" options as existing compounds are demolished.
Roughly 800 men remain on the island six weeks out from the closure of its immigration detention centre, with several buildings already dismantled.
About 100 men have applied to return to their country of origin, while talks are still under way to determine how to handle 200 others found not be refugees.
Immigration Minister Peter Dutton says they could be moved to alternative places of detention away from the regional centre, given they have no lawful claim to be in Papua New Guinea.
There is capacity at an East Lorengau transit centre to accommodate about 400 people.
"We will work with the PNG government in helping them provide the services to those people," Mr Dutton told parliament on Thursday.
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