'Malaysia deal on track'

Prime Minister Julia Gillard says a deal with Malaysia over processing asylum seekers is still on track.

Under a deal announced on May 7 up to 800 new boat arrivals will be relocated to Malaysia for processing in return for Australia accepting four thousand people who've already been granted refugee status there.

Malaysia's Home Minister Datuk Seri Hishammuddin Hussein reportedly has said that a boatload of 32 asylum seekers which arrived on May 14 won't be accepted by his country.

But Ms Gillard has told reporters in Adelaide the agreement hasn't changed, and asylum seekers arriving after her announcement will be taken into detention pending removal to a third country.

She says the Malaysian minister's words had been misreported.