Papua New Guinea will close an Australian immigration detention center after the country's Supreme Court has declared detention there unlawful.

Prime minister, Peter O'Neill says his country will ask Australia to make arrangements for the hundreds of asylum seekers on the northern Manus Island.

However, Australia maintains that asylum seekers will not be resettled in Australia under any circumstances. Its unconstitutional, hard-line stance has been strongly criticised by the United Nations and human rights agencies.

"The situation in relation to Manus (Island) as I've repeated today, the government's position is very clear, that is we are not going to accept people who have sought to come to our country illegally by boat. So, we will work with the PNG government to look at the situation, to provide what assistance we can but we are not going to allow people smugglers to get back into business," said  Peter Dutton, Australian Immigration Minister.