Attorney-General Nicola Roxon says the government isn't setting boundaries on what it's prepared to discuss with the opposition to produce a workable offshore asylum-seeker processing regime.
Ms Roxon says Immigration Minister Chris Bowen has been very public in declaring the government and opposition need to sit down and talk, to try and break the deadlock on the issue.
"We have seen a terrible tragedy over the last couple of days and we are convinced that the risk of more of those continues if we don't have successful offshore processing as part of a deterrent for those trying to come to Australia," she told ABC Radio.
"We are trying to sit down and talk with the opposition about a compromise. We are not setting boundaries on what that compromise might involve."
The Australian newspaper reported on Thursday that the government was now prepared to accept sending asylum seekers to Nauru as part of a deal with the coalition to legislate its Malaysia Solution and reinstateoffshore processing.
The report said cabinet had given Immigration Minister Chris Bowen the authority to adopt Nauru as part of its border protection regime, in return for coalition support for legislation to overcome the High Court ruling that halted the plan to send asylum-seekers to Malaysia.
Up to now, the government has persistently rejected Nauru as a centre for offshore processing of asylum seekers, preferring instead its Malaysia deal by which 800 asylum seekers would be sent there in return for 4000 refugees.
The Malaysia deal was on the brink of being implemented when it was overturned in August and the government needs opposition support for legislation to overcome that decision.
Ms Roxon said the government had been clear about its preferences.
"Unfortunately Mr Abbott has been more determined to play politics, although he and his party also agree there should be offshore processing," she said.
Ms Roxon said she would not second guess what might be in discussions if the Liberal Party agreed to talk.
But the recent tragedy made it clear this wasn't a political game.
"This is actually something that affects people's lives and we think it requires some maturity from the opposition to sit down and talk with us about options," she said.
"That may mean that they'll have to compromise. It may mean we'll have to compromise."
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