More than 1600 refugees have expressed interest in Australia's resettlement deal with the United States, which is expected to offer up to 1250 places.
The detainees on Manus Island and Nauru are slated to resettle in America under the one-off deal struck by the federal government, with US officials vetting refugees to decide who will be accepted.
More than 900 detainees have completed their first interviews with US officials. In excess of 800 had their biometric details collected and 250 had security interviews, a Senate committee heard on Monday.
Medical tests for refugees held on Nauru began last week, with about 220 people expected to be assessed in the first batch.
Immigration officials say the most vulnerable refugees will be given priority, with an initial focus on women, children and families.
In relation to contingency plans for anyone not accepted under the deal, the department says refugees on Nauru have the option of staying there for up to 20 years or volunteering for resettlement in Cambodia.
Refugees on Manus Island could settle in Papua New Guinea, while anyone found not to be in need of international protection would be expected to return home and given assistance to do so.
Some 38 refugees on Manus Island have chosen to settle in PNG, senators were told.
Detainees on Manus Island were told last week Australia's support for the regional processing centre would end at the end of October.
Australia will remove itself from the process on August 31, meaning no more help for refugees returning to their home countries voluntarily from that date forward, immigration officials told the inquiry.
Meanwhile, Australia has begun a refugee screening process for seven cases, 30 individuals in total, for potential resettlement from Central America in relation to the US deal.
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