The Papua New Guinea government is to develop an economic package to put to Australia if it wants to re-open the asylum seeker detention centre on Manus Island, off the country's north coast.
An official says this was the outcome of talks the acting prime minister of Papua New Guinea, Sam Abal, held yesterday with local government leaders and the military on Manus.
The official says there's a desire for some infrastructural developments on Manus and the island's leaders would be happy to have the Australian camp in exchange for this work being done.
Mr Abal is expected to formally put his case to Cabinet later this week.
