Five players from the Iranian women's football team have broken free and are now under the protection of the Australian Federal Police, seeking assistance from the federal government.
Government sources have confirmed the reports, first published by Nine newspapers late on Monday night, to SBS News.
It's understood Home Affairs Minister Tony Burke has flown to Brisbane to meet with the women.
The Australian Federal Police and Queensland Police have declined to comment.
The team has been in Australia for the Women's Asian Cup and has been staying at a hotel on the Gold Coast under heavy guard by Iranian security.
"They don't eat in the restaurant. They have to eat in the conference room. They're escorted once they get into the lobby and security makes sure they go to the conference room and don't go anywhere else," a source told SBS News last week.
The development follows growing calls, including from some members of the federal Opposition, for the government to intervene and offer the players asylum.
Iranian community organisations had expressed grave fears the footballers could face retribution if they returned home after refusing to sing the national anthem before their tournament-opening match against South Korea last Monday, in what was widely viewed as a silent protest.
After their 2-0 defeat to the Philippines on Sunday, which ended their tournament, protesters blocked the team bus for about 15 minutes as it attempted to leave the venue.
Demonstrators banged on the side of the vehicle and chanted "let them go", prompting police to intervene and push back a crowd of about 200 people.
As the bus slowly pulled away, some players were seen taking photos of the protest.
Before that match, the Iranian players and coaches again sang the national anthem and displayed a military salute.
"We want to come back to Iran as soon as we can," coach Marziyeh Jafari said.
"I want to be with my country and with Iranians at home in Iran. We are eager to come back."
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