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.
Greens Leader Richard Di Natale slammed the decision.
"We have a series of events that demonstrate we've got a department that is of control, a minister out of his depth," he told reporters in Melbourne on Monday.
"On the back of a litany of claims around sexual abuse violence and intimidation in our detention centre network we just learnt that the company that manages our detention centres has been given a reward in the shape of another five year contract."
He said it was time for minister Peter Dutton to reconsider whether he is right for the role and called on the government to rethink awarding the contract.
