Refugees awaiting acceptance for resettlement by the United States will be relocated to the East Lorengau Refugee Transit Centre and given the option to return home with assistance, or to move to another country where they have the right to reside.
"Immigration is telling people that their plan is to remove those people who were interviewed for America to East Lorengau camp, which is close to Lorengau town", said Behrouz Boochani, a Kurdish Iranian detained on Manus for almost four years, referring to the island's major town.
In an interview with Sky News, Mr Dutton was unable to say how numerous approximately 800 asylum seekers on the island would be relocated to the U.S., but conceded there "may be a small number" of detainees who aren't accepted by the USA, despite having been deemed eligible for asylum by Australia.
"You can not stay at the regional processing centre".
The remaining men whose claims have been rejected have been told they should agree to return to their countries of origin before the end of August, when a $20,000 cash incentive from the Australian Government will cease.
"Do not leave it too late to make a decision".
Australia agreed with former U.S. President Barack Obama late previous year for the United States to resettle up to 1,250 asylum seekers held in much criticized processing camps on Papua New Guinea and Nauru.
A Papua New Guinea supreme court ruled in April 2016 that the center was unconstitutional and the detention of its more than 800 asylum seekers illegal.
"We're just not going to allow the people smugglers to be out there again saying, 'Look, if you wait you'll eventually get to Australia, '" Dutton told Sky News in April.
"Everyone will need to move out of RPC (Regional Processing Centre) before it shuts down", said the official.
Detainees say they fear being relocated temporarily to the transit centre and fear for their safety if they are resettled elsewhere in PNG.
Peter Dutton says the United States is not "putting roadblocks" in the way of the resettlement deal.
Behrouz Boochani, an Iranian refugee and journalist at the centre, told Fairfax Media: "I'm sure they will threaten people to accept this decision". The government had said shots were fired in the air, not into the centre.
But the immigration official told detainees they should see the centre's closure as a good thing.