The Prime Minister appears to have caved into Winston Peters over the Government's pledge to increase the refugee quota - putting the plan to take an extra 500 every year in jeopardy.

That's despite the government already funding two new accommodation blocks to house them.

Ms Ardern arrived in Nauru to an environment of confusion over her Government's refugee policy, courtesy of Winston Peters.

"We've always been very clear that the things that both NZ First party, Greens and Labour have formed commitment around sit within the confidence and supply agreement, the Coalition agreement, everything else - we go through a process of elimination," Ardern told reporters.

Since being elected, the Immigration Minister has consistently said he'll raise the quota in this term of Government.

The Government even made a cash commitment to the quota, spending $14 million in this year's budget to support two new accommodation blocks at the Mangere Refugee Centre to support the increase in the refugee quota to 1500 a year.