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The Australian Immigration Minister, Chris Bowen, says the asylum seekers recently stopped on their way to Australia will be held on Christmas Island until another country agrees to take them.

Australia and Malaysia have reached an in-principle agreement, but the deal has not been finalised and it would only apply once it has been signed.

Since annoucing the plan, more than 100 asylum seekers have been stopped and will be held at the Christmas Island detention centre until it is finalised.

Mr Bowen says the Government is in talks with a number of countries.

"It's well known that we have been developing a regional framework and they'll be processed under those regional agreements that we've been progressing," he said.

"Until they're removed from Australia to a third country, they'll be held at Christmas Island pending removal."

Explanation needed

Amnesty International says the Australian Government must explain exactly what it is planning to do with more than 100 asylum seekers who have arrived since it announced its new refugee policy.

The Australian Government said the deal with Malaysia would discourage people smugglers, but since the announcement three boats carrying 106 asylum seekers have arrived.

The Government says those seeking asylum onboard will be processed overseas, but it will not say where and when because the Malaysia deal is not finalised.

Legal limbo

Graham Thom from Amnesty International says the latest asylum seekers are trapped in legal limbo.

"We're talking about very vulnerable people," he said.

Mr Thom says the uncertainty will be psychologically damaging.

"To keep them in a situation of limbo when the prospect looms of sending them to a country like Malaysia where they could be forcibly returned - we're about to see some really desperate people detained in situations that is going to damage them," he said.

Opposition customs spokesman Michael Keenan says the Government's plan is a farce.

"If boats continue to arrive at the rate they've arrived this week then that 800 quota will be filled within two months," he said.

"This is hardly a long term or lasting solution to our ongoing border protection disaster."

Children moved

Meanwhile, the Australian Government says it has now moved 383 children out of immigration detention into community detention.

The Government promised last year that most children and families will be moved out of detention by the end of June this year.

Australia says more than 35 per cent of children in detention are now living in the community and it is on track to meet the target.