Download Australia's new Prime Minister Julia Gillard has suggested sending asylum seekers from countries like Afghanistan and Sri Lanka to East Timor to be processed.
The topic was discussed when East Timor's President Jose Ramos-Horta met with the Prime Minister, Xanana Gusmao in Dili this week.
Any decision rests with the Prime Minister, but the Australian leader Julia Gillard has yet to speak to Mr Gusmao.
There is also growing opposition to the proposal among East Timor's politicians in Dili.
Radio Australia’s Sara Everingham reports.