Papua New Guinea's prime minister has launched an extraordinary attack on the Coalition, accusing it of "misrepresenting" Australia's foreign aid deal with his country.

Opposition foreign affairs spokeswoman Julie Bishop says Peter O'Neill has told the Coalition he is now in control of the aid money coming from Australia to his country.

It is likely aid funding to PNG will increase after it agreed to process and resettle refugees who come by boat to Australia.

Mr O'Neill has accused the Opposition of misrepresenting a private briefing he gave them last week about the deal for political gain.

"I don't particularly appreciate being misrepresented by others for their own political interests," he told the ABC.

"I am disappointed with some of the debates put forward by some of the leaders in the Opposition in Australia, in particular statements I am alleged to have made to them.

Key points: Aid funding to PNG likely to increase after asylum seeker deal

Aid funding to PNG likely to increase after asylum seeker deal No details have been publicly released

No details have been publicly released PNG PM Peter O'Neill says the Coalition is misrepresenting his statements on the issue

PNG PM Peter O'Neill says the Coalition is misrepresenting his statements on the issue He has urged the Opposition to show more respect towards his government

He has urged the Opposition to show more respect towards his government Joe Hockey says the Coalition has not disrespected PNG

"They are completely untrue."

Opposition Leader Tony Abbott has suggested the foreign aid money would not be spent responsibly and with accountability.

Mr O'Neill is calling on the Opposition to show more respect in its dealings with his government.

"We are not going to put up with this kind of nonsense," he said.

"We are helping resolving an Australian issue. Try and be respectful when we start talking about these issues."

Mr O'Neill says many of the projects involving Australian aid will also be partially funded by the PNG government.

"So I don't see why we should be dragged into a debate that is now taking a new twist to represent individual interest and political interest in Australia," he said.

He says no details have been released publicly on the amount of money the Australian Government has committed to in its new deal.

"There is no indication that we were boasting about the amounts of money that was paid," he said.

Sorry, this video has expired Peter O'Neill speaks to Liam Cochrane

"I think those details were politely not discussed and I think it's unfair on them (Australian politicians) to try and drag us into the debate.

"We understand the elections are coming around the corner, but please let us debate on facts."

The PNG government has also made its displeasure known through its High Commission in Canberra.

PNG's High Commissioner to Australia, Charles Lepani, has released a statement warning "Australian politicians to observe international protocols and courtesies when discussing relations with other friendly sovereign nations".

He says Australian politicians should not "impugn the dignity of our leaders" who are assisting Australia with the complex issue of asylum seekers.

Coalition being 'very respectful', Hockey says

Opposition treasury spokesman Joe Hockey says the Coalition has not disrespected PNG through its comments on foreign aid.

"I think the Coalition and all Australian politicians have been very respectful of the relationships we have with Papua New Guinea and other jurisdictions as well," he said.

"But let me just say this, under the Coalition there will be no blank cheques from Australian taxpayers to any other country."

Mr Hockey has suggested the price tag for the Government's policy to send all asylum seekers who arrive by boat to be processed and resettled in PNG could be billions of dollars.

Mr Hockey says he assumes Australia will have to pay Centrelink and Medicare benefits for refugees who end up living there for the rest of their lives.

"I assume that is exactly what is going to happen," he said.

"That's why the Government hasn't told us how much this is going to cost, because you are looking at billions, billions and billions of dollars for as far as you can see for basically setting up an Australian colony in Papua New Guinea."

Former immigration minister Brendan O'Connor says the obligations owed to the refugees will be shared between Australia and PNG.

He has also rejected Mr Hockey's assertions.

"If the [arrival of] vessels slowed then the hypothetical that's been put forward by Joe Hockey doesn't exist - that is, thousands of people over years going to be settled in PNG," he said.

"I think this will see a cessation over time of vessels, which means the cohort we're talking about is relatively small."

The extraordinary broadside from the Papuan leader follows a subtle public criticism from Indonesia about the Coalition's "turn back the boats" policy.

Indonesia's president recently signed a communiqué calling on leaders to refrain from "unilateral action" that would undermine regional cooperation on people smuggling.