The immigration department boss says it's premature to speculate on whether the Manus Island detention centre could become an open facility like the one on Nauru.
Australian and Papua New Guinea officials began talks this week on the fate of hundreds of asylum seekers, after a PNG Supreme Court ruling the centre was illegal.
The PNG government has flagged it wants to shut down the centre but the immigration department has played down the prospect of closure.
Department secretary Michael Pezzullo insists Australia is happy to co-operate with the PNG government on complying with the court order.
"There is no crisis that requires any kind of closure of the amenity ... there is no uplift required, which has been breathlessly reported by otherwise reputable media outlets," Mr Pezzullo told a Senate estimates hearing in Canberra on Thursday night.
He said lawyers from both countries will be meeting for further talks next week.
Last October, four days before an Australian High Court challenge to offshore detention, the Nauru government scaled back security at the detention centre and allowed asylum seekers to roam around the island.