Asylum seekers whose refugee claims have been rejected and face the possibility of being stateless could be sent to Papua New Guinean jails.
The warning is in leaked documents from PNG Immigration, circulated to about 50 asylum seekers, with unsuccessful claims, at the Manus Island detention centre.
Those who can be deported should prepare to leave while those deemed stateless will remain at the centre or be transferred to any location including "correctional institutions".
"If (Immigration and Citizenship Services) assesses that you cannot be removed to your country of origin, you will remain in custody until you are able to obtain a visa to lawfully enter and reside in PNG or another country," a document says.
Some PNG prisons have huge problems with overcrowding.
Asylum seekers who voluntarily agree to depart will be eligible for some financial help, the document says, but those who don't will miss out.
Asylum seekers will undergo departure planning interviews over the coming days and will have the opportunity to provide any last minute information about their claim.
The documents say they have a right to have a PNG-certified lawyer present but it will be difficult for the asylum seekers to arrange legal representation because of a shortage of lawyers on the island.
"If the lawyer charges a fee, this must be paid by you," a document says.
AAP understands August 20 has been slated as the possible deportation date.
The asylum seekers' removal could affect the availability of witnesses for a PNG constitutional challenge against the legality of the Australian-run detention centre being brought by lawyer Ben Lomai.
The case is due to return to the court later this month.
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