Nauru says asylum seekers sent to the island by Australia won't be allowed to become citizens or become permanent residents.
At a joint press conference with Nauru president Baron Waqa on Saturday, Australian Prime Minister Kevin Rudd said that people found to have a genuine refugee claim would "have the opportunity to settle and reside on Nauru".
But Joanna Olsen,an official spokeswoman for Nauru, told Fairfax Media that none of the asylum seekers would get citizenship or be considered permanent residents.
"These people are coming here and they will be staying here and in transit," Ms Olsen told Fairfax Media.
"It is not permanent settlement. It is considered long-term stay. It is still temporary in the government's view and they will eventually be moved on."
Mr Rudd and Mr Waqa signed a memorandum of understanding in Brisbane on Saturday.
AAP reports the deal supercedes one struck between them last year and allows for asylum seekers to not only be processed on Nauru, but also to be settled there.
In his press conference, Mr Rudd said that "Nauru will not only maintain and extend its regional processing capacity, but it will also provide a settlement opportunity to persons it determines are in need of international protection".
"This means that those seeking safe haven will have the opportunity to settle and reside in Nauru."
