Transfield Services' contract to run the Nauru and Manus Island offshore detention centres is expected to be renewed for another five years.
In a statement to the Australian Stock Exchange on Monday, the detention centre operator said it had been chosen as the preferred tenderer to operate the federal government's offshore detention centres.
The publicly-listed construction firm took over from security group G4S on Manus Island in February last year, and has been in charge of the Nauru detention centre since 2013.
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