Australia and Nauru have formally agreed to the establishment of a regional detention camp to process people seeking refugee status.
"A memorandum of understanding has been signed during this week's Pacific Islands Forum leaders summit in the Cook Islands with both countries saying it is the next step in implementing the recommendations of the Expert Panel on Asylum Seekers."
In a statement, the Australian government says it is committed to implementing the panel's key principle related to policy that provides no advantage to people considering risking their lives on dangerous boat journeys.
Camps on Nauru and Papua New Guinea's Manus Island set up in 2001 under Canberra's so-called Pacific Solution closed six years later after the election of Rudd Labor Government.
The government says the signing of the new agreement sends a clear message that countries in the region are working together to undermine people smuggling networks and prevent loss of life at sea.