Human rights lawyers are hoping the Immigration Minister has set a precedent in granting a permanent protection visa to a teenage stowaway.

Immigration Minister Scott Morrison has decided to grant a permanent visa to a 15-year-old Ethiopian refugee, despite earlier indicating he would only do so if it was in Australia's national interest.

The boy's lawyer, David Manne, says his client is now an Australian permanent resident.

"This is a great outcome for our client. It is also a great outcome for the rule of law and is clearly in the national interest," Mr Manne said.

The boy has told Fairfax through his lawyers: "It has saved my life. It's a huge relief to finally have an answer."

The teenager, who came to Australia last year as a ship stowaway, was found to be a refugee, but was blocked from getting a protection visa due to a government cap.

The Immigration Minister capped the number of protection visas granted in the financial year at 2,773, after the Senate blocked the Government's re-introduction of temporary protection visas.

In June, the boy's lawyers won a High Court challenge to the cap. The 15-year-old was later advised by the Minister that his case may be refused on the basis of a strict "national interest test".

Mr Manne, who is also the executive director of the Refugee and Immigration Legal Centre, says after threatening to launch another legal challenge and arguing against the use of test, the Minister backed down.

"What lies behind that decision is unclear. I don't want to speculate as to precisely why the decision has been taken," he said.

He says there are many refugees in Australia in a similar situation.

"We will be pursuing every possible avenue to ensure that those people are also able to access permanent protection and get on with rebuilding their lives with safety and certainty," he said.

Opposition, Greens demand answers from Immigration Minister

Labor's Immigration spokesman, Richard Marles, says the granting of one protection visa has thrown the Government's policy into chaos.

He says Mr Morrison must reveal what this means for other asylum seekers.

"Immigration Minister Scott Morrison has said repeatedly no-one who arrives in Australia by boat will be issued with a permanent protection visa - he has just issued one," he said.

"The Minister has been dragged kicking and screaming to make this decision by the High Court."

Greens Senator Sarah Hanson-Young has welcomed the development.

"I am not sure I'd classify it as a change of heart from Mr Morrison, but obviously commonsense has prevailed and he will now be given a visa," Senator Hanson-Young said.

She says the Minister's decision sets an important precedent.

"How many people have to be dragged through the courts just to have the Minister do his job properly?" she said.

"Where someone is found to be a refugee, they should be given a visa. It is cheaper for the taxpayer. It is more humane and it shows Australia living up to its international obligations."

Immigration Minister says Tamils will not be returned to Sri Lanka

A spokeswoman for the Immigration Minister referred the ABC to the court proceedings, saying: "The Government has no further comment on matters before the court."

The Minister is in New Delhi continuing discussions with the government of India, and his spokeswoman says he will be in meetings all day.

Mr Morrison said on Monday there had been talks with the Indian government in the wake of 157 asylum seekers attempting to reach Australia by boat from India.

He told Macquarie Radio he wants to ensure there are no more boats.

"We have a very good understanding of where this vessel has come from and we have been having some dialogue with the Indian government and to work through these issues," he said.

"What we want to ensure is, there are issues around this venture itself, but more broadly we want to ensure there are no other ventures that may seek to come from India or Sri Lanka for that matter."

The Minister will not reveal where the asylum seekers are being taken, but says the Government has given an undertaking to the High Court that they will not be taken to Sri Lanka. The matter has returned to court today.

Lawyers acting on behalf of the Tamils say their clients are being held in the hull of an Australian Customs ship.