About 200 children will be released from the Pontville immigration detention centre in Tasmania within two weeks.
Immigration Minister Tony Burke says all but 75 of the unaccompanied minors housed at the centre, 30km north of Hobart, will be moved into communitygroup homes both on the mainland and in Tasmania.
"Over the course of this week we believe we've got places in the community for 100 and a further 100 the following week," Mr Burke told ABC radio.
Unaccompanied minors have previously not been detained in group homes in Tasmania.
Pontville is home to boys as young as 13 and their detention at the centre has been criticised by asylum seeker advocates and Tasmania's former children's commissioner.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
Opposition immigration spokesman Scott Morrison said an incoming coalition government would honour Mr Burke's decision.
"I would think to pick up where Tony Burke has left off on that point," he said.
