Hun Sen wrote that Cambodia "has an open heart" for refugees and that the impoverished South-East Asian nation "will sign a Memorandum of Understanding with Australia to take confirmed refugees in the near future".
But Immigration Minister Scott Morrison has refuted the idea that a deal is just around the corner.
"We are having positive discussions and I appreciate the response we are getting from Cambodia but we have still got some distance to travel [before reaching a deal]," Mr Morrison told ABC Radio.
He wasn't able to offer a timeframe in which the MOU would be signed.
"We don't have a date for that yet and we haven't come to a final arrangement," Mr Morrison says.
"We are still working through those details with officials."
Part of the hold-up in finalising the agreement is how much money Cambodia will get for resettling the refugees.
Greens Leader Christine Milne says the money will not go towards refugee resettlement, but rather will line the pockets of corrupt Cambodian officials.
"Australia will be bribing it [Cambodia] and engaging with it in order to push refugees out of sight, out of mind," Senator Milne says.
Cambodian Opposition Leader Sam Rainsy agrees.
"I think the Cambodian government will spend a small portion of that money and once this is done I think refugees will face neglect and most of the money will be pocketed by high ranking government officials," Mr Rainsy told ABC Radio.
The federal government is also facing criticism over its handling of offshore processing.
The Human Rights Commission has released its submission to a senate inquiry into the deadly riots on Manus Island.
The report says Australia exercises "effective control" over the detention centres on Manus Island and Nauru, and therefore must guarantee protection for its asylum seekers.
The Commission says Australia has six key obligation to asylum seekers under international law. They are: 1) protecting life 2) protecting dignity and physical and mental integrity 3) not detaining persons arbitrarily 4) monitoring the situation in detention centres 5) undertaking investigations and implementing remedial action if violations occur, and 6) preventing future violations.
Daniel Webb from the Human Rights Law Centre argues that Australia is failing in its international obligations to asylum seekers.
"Australia masterminded the Manus arrangements, Australia pulls the strings, so Australia is absolutely legally responsible for the human rights violations that currently occurring there," he says.
Mr Webb was granted rare access to Manus Island detention centre, but was not allowed to take photos or recordings, or speak to detainees.
"I was shocked at just how harsh those conditions were inside that facility," Mr Webb has told SBS.
The overcrowding of the centre and the mental health of detainees there were his chief concerns.
The federal government concedes the measures are harsh, but says they are needed to deter people from arriving in Australia by boat.
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