A spokesman for the Immigration Minister says negotiations on the Malaysia asylum seeker deal are in advanced stages, but the ABC understands an agreement has already been struck.
The ABC understands the agreement to swap 800 asylum seekers in Australia with 4,000 people registered as genuine refugees in Malaysia now only requires the signatures of Chris Bowen and his Malaysian counterpart.
Given the logistics involved, the final stage off signing off on the estimated $300 million deal might still be some weeks away, but it is expected to happen this month.
It is also believed the 400 asylum seekers who have arrived on Christmas Island since the deal was first announced will not be among those to be transferred.
Instead, the Government is hoping to send them to Manus Island.
But the Greens are unhappy with the reports.
"It is ludicrous for the Government to suggest that these people should simply be in legal limbo for even longer simply because the Government now wants to send them to Manus Island rather than to Malaysia," Greens Senator Sarah Hanson-Young said.
Mr Bowen's office says there is an uncertain political situation in Papua New Guinea at the moment but talks are continuing.
Refugee advocates have opposed the deal with Malaysia, saying that asylum seekers sent there will not have the same level of protection that they enjoy in Australia.
The Government has been working with the Malaysians and the United Nations High Commissioner for Refugees on striking an agreement that addresses these concerns.
Another group that will be called in to assist is the International Organisation for Migration (IOM), which helped the Howard government establish detention centres on Nauru and Manus Island.
IOM director general Bill Swing is in Australia at the moment and will be holding talks with the Gillard Government.
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