The Government says a group of Sri Lankan asylum seekers being transferred from a Customs ship to the mainland will not be resettled in Australia.

The 157 men, women and children left in a boat from India and have spent nearly a month in legal limbo on board the Customs ship, after being intercepted by Australian authorities.

Immigration Minister Scott Morrison, who has just returned from India, would not confirm where they will be held onshore.

However, the ABC understands the asylum seekers are being moved to the Cocos Islands, and from there will be flown to the Curtin detention centre in remote Western Australia.

Mr Morrison, who held meetings with Indian ministers while in New Delhi, has suggested India could accept the asylum seekers.

"The minister for home affairs has confirmed to the Australian Government that in addition to India's standing policy of receiving returns of any Indian citizens ... they will also consider the return of non-Indian citizen residents who may be Sri Lankan nationals," he said.

"This is a significant and generous extension of Indian government policy on these matters."

Mr Morrison insists there is no change to the Coalition's immigration policy.

"They won't remain in Australia. They will not be resettled in Australia," he said.

"That is the policy of the Australian Government and there is no change to our policy on any front and more importantly there is no change to our resolve."

Mr Morrison says the asylum seekers have been well cared for on the Customs boat, and denies the decision was influenced by action on behalf of the asylum seekers in the High Court.

Prime Minister Tony Abbott says the case reinforces the Government's message to asylum seekers.

Sorry, this video has expired Transfer raises hopes of refugee advocates

"The fundamental point I make in total agreement with Mr Morrison is don't get on a boat to come illegally to Australia because even if you get here you won't stay here," he said.

"You will not become a permanent resident of Australia if you get on a boat and come here illegally."

Greens immigration spokeswoman Sarah Hanson-Young says she is pleased the asylum seekers are being transferred to the mainland, but has accused the Government of making policy on the run.

"Does anyone really believe that Mr Morrison is in control of this situation at all?" she said.

"He's making it up as he goes along. He is scrambling to come up with a solution that doesn't involve treating people properly, begging countries to take those on board the Australian Customs vessel."

Asylum seekers' legal status a 'fluid situation'

International law Professor Donald Rothwell says the asylum seekers' legal status remains uncertain.

"Bringing them to the mainland - if that is ultimately their destination - would bring them within the migration zone and it would activate for them a capacity to make asylum claims," he told ABC News 24.

"So we are in quite a fluid situation in terms of the ability of these people to actually make asylum claims under Australian law."

Sorry, this video has expired Professor Donald Rothwell discusses the asylum seekers' legal status

Professor Rothwell says the transfer could open up the possibility of another High Court application “to actually have the rights of these people recognised under international and Australian law".

"The principal action for the High Court application brought by the applicants which were the asylum seekers was of course that they not be returned to Sri Lanka and that the government also not take them to Nauru or to Manus Island," he said.

"The factual circumstances are now quite radically changing and whether or not it could be the possible to adjust the application before the High Court to seek orders that these people not be taken to India remains a legal question for ultimate determination and ultimately a matter of judgement for the plaintiffs.

He added: "To a degree it seems to me this is Australia contracting their obligations to ascertain the identity of these persons and to once again assess the asylum claims that these people may well be legitimately making."



High Court to hear asylum seekers' case

The full bench of the High Court will hear the asylum seekers' case next month.

Lawyers for one of the asylum seekers are seeking a court order preventing the Federal Government from sending the asylum seekers to Sri Lanka, Nauru, or Papua New Guinea.

Instead, the group wants to be sent to Australia or another country that "has assumed the international law non-refoulement obligations".

Lawyers also want the court to declare that the Government acted unlawfully and abused its powers.

In a defence statement filed to the court, the Federal Government said the people on board the vessel did not hold visas entitling them to travel to or enter Australia.

It also refused to admit the people on board are entitled to claim asylum from any country.