Australia has agreed to the closure of the Manus Island immigration detention centre following talks with Papua New Guinea.

But Immigration Minister Peter Dutton says none of the asylum seekers will be settled in Australia.

Mr Dutton met PNG Prime Minister Peter O'Neill in Port Moresby on Wednesday for talks about shutting down the centre, following a PNG Supreme Court ruling it was illegal.

Mr O'Neill said a number of options for closing down the centre were being canvassed and further announcements would be made soon.

"Both Papua New Guinea and Australia are in agreement that the centre is to be closed," he said in a statement.

Mr Dutton said it has been the government's long standing position to work with PNG to close the centre.

The government would support people settling into PNG or return to their country of origin.

"Our position, confirmed again today with PNG, is that no one from Manus Island regional processing centre will ever be settled in Australia," he said in a statement.

Mr O'Neill said he was satisfied that officials from both sides were making progress but it was important the process was not rushed.

"This must take into account the interests of the people of Papua New Guinea and the wellbeing of asylum seekers and refugees.

"The Supreme Court has delivered its ruling and our government is complying with this decision."