The Immigration Minister has moved to allay concerns that his department was considering deporting a 96-year-old woman.

British national Gladys Jefferson wants to stay in Tasmania with her only surviving family members, but has been refused a permanent migrant visa because of her ailing health.

Her family fears she faces deportation.

In a statement this afternoon, the Minister, Chris Bowen, says the Government "is not deporting, nor even considering deporting Mrs Jefferson".

"Mrs Jefferson is lawfully in Australia and currently has a visa application before the department," he said.

"There are no plans to remove her whatsoever.

"While Mrs Jefferson's application for a contributory parent visa was rejected, the department was in contact with Mrs Jefferson's family to convey this information and advise on what other visa options she might have."

But Mr Bowen has indicated the great-grandmother will not be given any special treatment.

"My department will continue to process Mrs Jefferson's current visa application in the normal way and to communicate the outcome to Ms Jefferson and her family," he said.

"While we sympathise with the family's circumstances, people wanting to migrate to Australia must meet visa requirements - including the health requirement - for the department to be able to lawfully grant them a visa."

Mrs Jefferson's son-in-law Paul Grigg has said she has the money to support herself and would not be a burden on taxpayers.

The Australian Greens are urging the Federal Government to reduce red tape in the immigration system and make it fairer.

The Greens' Immigration spokeswoman, Sarah Hanson-Young says the case suggests the government has lost heart and the system needs to change.

"There was a significant parliamentary inquiry that looked at this issue and recommended that the red tape had to go and the system had to become fairer and have a bit more heart, the government has failed to respond to that inquiry," she said.