Cambodia's foreign minister has met with Australia's foreign minister Julie Bishop, who's asked Prime Minister Hun Sen to entertain the request.
Cambodian government spokesman Phay Siphan has told SBS the option will be seriously considered.
"Through cooperation and deliberation between the two countries .. so that we have to be together to understand how to take care of this issue together".
The Department of Foreign Affairs and Trade said Ms Bishop had discussed the challenges people smuggling posed in the region as part of a wide-ranging agenda during meetings.
"There has been a significant level of co-operation between relevant agencies on people smuggling matters, and we will continue to work through the Bali Process to manage processing of illegal maritime arrivals and returns," it said in a statement.
Greens leader Christine Milne said on Sunday Australia was disgracing itself globally.
"Once again again its is appeasement of an anti-democratic regime, just like Tony Abbott did in Sri Lanka," she told reporters in Hobart.
"Why isn't Australia standing up for the opposition and the examination of the election rorting that went on in Cambodia rather than appeasing the regime and trying to outsource Australia's asylum seeker responsibilities?"
Cambodia's opposition party has boycotted parliament since the July elections, alleging widespread vote rigging, and its leaders were taken to court in January for inciting civil unrest.
DFAT said Ms Bishop had discussed Cambodia's domestic political situation during her meetings.
