Prime Minister Malcolm Turnbull says he will not accept an offer to resettle asylum seekers on Manus Island and Nauru in New Zealand at this stage.

Key points: Malcolm Turnbull says Australia has an arrangement with the US

Malcolm Turnbull says Australia has an arrangement with the US "We cannot ignore the human face of what Australia is dealing with," Jacinda Ardern says

"We cannot ignore the human face of what Australia is dealing with," Jacinda Ardern says Bill Shorten earlier called on Mr Turnbull to accept the offer

New Zealand's Prime Minister Jacinda Ardern discussed the offer with Mr Turnbull on Sunday, as close to 600 men refuse to leave the now closed centre, despite water, food and power being cut off.

Many of the men say they are too afraid to resettle in alternative accommodation and are refusing to leave the detention centre, which is also a Papua New Guinea (PNG) naval base.

Mr Turnbull thanked Ms Ardern for the offer, which was first made by former prime minister John Key, and said his Government remained focused on a refugee resettlement deal with the United States.

"The offer has been restated, we thank New Zealand for making that offer, we are not taking it up at this time," Mr Turnbull said.

But Mr Turnbull did not rule out accepting Ms Ardern's offer at a later stage.

"What we are seeking to do is ensure there are opportunities for resettlement for the people on Manus Island and Nauru," he said.

"We have an arrangement with the United States where a substantial number — 1,250 — can, subject to the US rigours vetting, be resettled in the United States.

"We want to pursue those, conclude those arrangements, and then in the wake of that obviously we can consider other ones."

Ms Ardern said some of the discussions with Mr Turnbull were "challenging" and "frank".

"This is a very genuine offer," she said.

"We of course do not have the circumstances that Australia is operating under, but we also cannot ignore the human face of what Australia is dealing with.

"The offer absolutely remains on the table."

Jacinda Ardern said some of the discussions with Malcolm Turnbull were "challenging" and "frank". ( Reuters: David Gray )

New Zealand has a more compassionate approach: Di Natale

Mr Turnbull's decision not to accept the offer may prolong what Greens leader Richard Di Natale has called a "humanitarian catastrophe" on Manus Island.

The PNG Supreme Court ruled the detention of asylum seekers was illegal and the PNG Government says it is Australia's responsibility to deal with those who do not want to resettle in the country.

The stand-off at the Manus Island detention centre prompted Opposition Leader Bill Shorten to issue a statement on Friday, calling on Mr Turnbull to accept the offer, describing it as not dissimilar to the US deal.

That was dismissed by Immigration Minister Peter Dutton, who said Mr Shorten was trying to appease the left of his party with "cheap political stunts and mealy-mouthed words".

He said the statement would be "music to the ears of people smugglers" and that he was making policy on the run.

Sorry, this video has expired The men in Manus Island detention centre say they don't feel safe

But on Sunday morning, a Government backbencher, former defence minister Kevin Andrews, said the proposal should be seriously considered.

"The reality is, we have an intractable problem at the present time," he told Sky News.

"Yes, the United States are going to accept some of these people but there is still a large number there."

Mr Andrews said any deal would need to ensure people smugglers were not encouraged to restart dangerous voyages to Australia.

Senator Di Natale said New Zealand had a more compassionate approach to refugees.

"It is so important that we bring them here and allow them to make a contribution and our neighbours across the ditch are showing us up," he told ABC Insiders.

"They have said they are prepared to shelter some of these people and they are showing the decency and compassion that this Australian Government is so lacking."

The Greens leader also defended Adam Bandt's description of Mr Dutton as a "terrorist", remarks made during a refugee rally on Saturday.

"Amnesty International have said that Peter Dutton presides over a regime that tortures people," Senator Di Natale said.

"We are talking about people who have been attacked and assaulted in these camps, where women who have been raped have been denied terminations."