The Northern Territory Government has denied reports its policies are causing an increase in the number of Aboriginal people going to prison.

Indigenous people make up more than 80 per cent of the Northern Territory prison population but only 30 per cent of the general population.

The North Australian Aboriginal Justice Agency has told Fairfax media that Territory police are targeting Indigenous people for some crimes and says Government is funding more prison cells rather than programs to keep people out of jail.

But Deputy Chief Minister Marion Scrymgour says Northern Territory laws do not discriminate.

"This is not about targeting Aboriginal people, it is offensive for anyone to say that," she said.

"Unfortunately, we do have high levels of violence amongst our Aboriginal people. We need to reduce that. We need to work with them, and hopefully we can reduce that cycle."