Papua New Guinea Prime Minister Peter O'Neill says he's encouraged by incoming Australian Prime Minister Tony Abbott's commitment to the regional resettlement arrangement between the countries.
The deal to send all asylum seekers who arrive in Australia by boat to PNG was signed with prime minister Kevin Rudd, who was defeated by Mr Abbott in Saturday's election.
Mr O'Neill spoke to Mr Abbott on Monday amid fears in PNG that the controversial scheme would be scrapped.
"I had a frank conversation with Abbott yesterday (Monday) and I was encouraged by his commitment to maintaining the arrangement," Mr O'Neill said in a statement on Tuesday.
"PNG is just as determined as Australia to combat people smuggling in the region and globally.
"We both agreed that the Arrangement appears to be working, and it's in our interest to maintain it."
Mr O'Neill said he was confident that Australian aid to PNG - $500 million annually - will be maintained, including the redirection of aid under the Resettlement Agreement.
He also rejected calls by PNG Opposition leader Belden Namah for Mr Abbott to cancel the deal because it "was not in the interest of PNG and Australia".
"I urge the Opposition Leader to be more objective when debating regional and global issues like people smuggling and how PNG should help other countries tackle it," Mr O'Neill said.
"Emotional outburst for political point-scoring is unhelpful to anyone."
There are currently 680 asylum seekers being detained on Manus Island.
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