Tensions at the Manus Island detention centre erupted into a violent breakout on Sunday night, after asylum seekers were told their only option for resettlement was to live in Papua New Guinea.

Immigration Minister Scott Morrison has held a press conference in Canberra to release details about the incident.

Thirty-five asylum seekers escaped from the centre through a fence about 6:15pm (local time) Sunday, but the Minister said they were quickly recaptured.

Mr Morrison said all "non-essential staff" were evacuated, several internal fences were knocked down, safety-glass panels were smashed, bunk beds were "broken apart" and the pieces used as weapons and thrown.

Eight asylum seekers have been arrested and 19 have been treated at the centre's medical clinic, but Mr Morrison says none of the patients are "exhibiting life-threatening conditions". Five remain in medical care.

Mr Morrison says the "disturbance" was the result of "much-heightened" tensions at the facility but that "control" had been restored by 7:30pm.

He said a meeting convened by the PNG Immigration and Citizenship Service Authority (ICSA) with asylum seekers about two hours earlier had broken down when asylum seekers "became agitated and commenced chanting" and the local officials left.

"The transferees were advised by the PNG ICSA that those found to be refugees will be offered settlement in PNG," he said.

Mr Morrison said the officials "confirmed with the transferees that a third country option will not be offered and that neither the PNG nor Australian governments will be acting on behalf of the transferees in seeking alternative settlement countries to PNG".

Refugee advocate says tents burnt during break-out

Refugee Action Coalition spokesman Ian Rintoul says he was told by asylum seekers inside the centre that the trouble started after they were told their prospects of resettlement in another country were bleak.

"The things escalated from there. There were some fires set," he said.

"I don't know the extent of the damage. We were told some tents had been burnt.

Manus Island Located in northern Papua New Guinea

Located in northern Papua New Guinea Island is 100km long, 30km wide

Island is 100km long, 30km wide Population 50,000

Population 50,000 Largest city is Lorengau

Largest city is Lorengau Detention centre first opened 2001, reopened 2012

"Some people had jumped over internal fences and then later, towards six o'clock, the outer perimeter of the fence was breached and people did leave the compound."

However, Mr Morrison says he has been told no fires were lit.

The Minister says the resettlement deal for Papua New Guinea to take in asylum seekers found to be refugees, struck by former prime minister Kevin Rudd, still stands.

"The arrangement that the previous prime minister had done with the Papua New Guinean government is the same arrangement that we have, with that prime minister and the government of Papua New Guinea," he said.

Prime Minister Tony Abbott said this morning he still expects the asylum seekers can be permanently resettled.

"Prime minister Peter O'Neill has reassured me repeatedly that the same deal that was on offer to the former government remains on offer," he told ABC's RN Breakfast.

Mr Morrison says a full review of last night's escape is under way.

Application processing has begun, says PNG foreign minister

PNG's foreign minister Rimbink Pato says officials have started processing refugee applications.

But the country does not have a visa category for refugees and there has been little public information about how, and where, they might be resettled.

Mr Pato told PNG's parliament last week that he would seek the help of the Australian Government and the United Nations in deciding whether to resettle refugees within the country.

He said the option of resettling refugees in a third country would also be explored.

"So what the cabinet has decided recently is to appoint a group of eminent Papua New Guineans who will be assisted by relevant expertise from the UN, from the Australian Government, and other responsible stakeholders, to come up with relevant policy framework determining the question whether those asylum seekers will or will not be settled in PNG," he said.

The Manus Island detention centre was first set up by the Howard government in 2001.

It was closed by the Labor government in 2008 but reopened by them in November 2012.