Australia won't confirm refugee deal

The federal government is refusing to confirm reports Australia will sign an asylum-seeker swap deal with Malaysia on Monday.

But it has indicated an agreement might be signed in "coming days".

Under a deal announced by Prime Minister Julia Gillard in May, Malaysia will take up to 800 asylum seekers who arrive by boat in return for Australia accepting 4000 processed refugees.

The deal has been subject to intense discussions between Canberra and Kuala Lumpur, and the United Nations High Commissioner for Refugees.

Opposition Leader Tony Abbott doubts whether pen will put to paper on an arrangement he describes as the federal government's "incredibly brutal option".

"I'll believe it when I see it, because this mob are so much better about saying what they are going to do than they are at actually delivering," he told Macquarie Radio on Friday.

Mr Abbott took aim at critics of the Howard government's so-called Pacific Solution, under which asylum seekers arriving in Australian waters by boat were transferred to Nauru for processing.

"I hate to think of the righteous denunciations that would have come from people who are now deadly silent towards this bad government," he said.

Mr Abbott said the prospect of sending asylum seekers to Malaysia had done nothing to deter boat arrivals.

Since the deal was first announced, 520 people have arrived on 10 boats. Two of those boats were intercepted this week.

Those on board are being detained at the Christmas Island immigration detention centre, pending their removal to a third country for processing.

They are not likely to go to Malaysia because Kuala Lumpur has indicated it will only accept asylum seekers who arrive after its deal with Canberra has been signed off.

Instead, the government is keen to pursue negotiations with Papua New Guinea, even though discussions with Port Moresby have been hindered by the uncertain political environment there.

Foreign Minister Kevin Rudd, who is expected to meet PNG officials in Bali on Friday, says Australia has to be cautious about how it proceeds with talks.

Meanwhile, tensions remain high at the Christmas Island centre where the immigration department says up to 100 people may have been involved in a disturbance on Thursday night.