The Nauruan government intends to process the refugee claims of 600 asylum seekers within a week, saying it has flung open the doors of the controversial camp and the era of detention "has ended".

As Fairfax Media reported on Sunday, the Australian-funded detention centre will become an "open centre" 24 hours a day from Monday.

In a surprise move, Justice Minister David Adeang said on Monday the government intended to process about 600 remaining refugee claims "within the next week".

Fairfax Media has sought detail on how this would be achieved, and how the Nauruan government will ensure claims are properly assessed. There is speculation the claims have already been processed, but asylum seekers have not yet been informed of the outcome.

Immigration Minister Peter Dutton welcomed the open centre announcement and said the remaining refugee claims have been "under consideration for some time".

A small proportion of asylum seekers at Nauru have been settled on the island, however they have only been granted temporary visas and their future is uncertain.

A deal to resettle Nauru refugees in Cambodia has also been beset by problems and only a handful have taken up the offer.

Nauru announced the transition to an "open centre" last November and since then, detainees have been able to move freely outside the centre between 6am and 6pm.

A press release issued by the Nauru government on Monday said "detention had ended", however a government spokesman later clarified the centre would remain open.

All restrictions have now been lifted but detainees will still eat, sleep and receive medical services at the centre. It is understood they could opt to live outside the facility.

"The start of detention-free processing is a landmark day for Nauru and represents an even more compassionate program, which was always the intention of our government," Mr Adeang said.

The government pledged to appoint more lifeguards on the island "as swimming and other water sports are popular with refugee families, particularly at the local boat harbour".

To ensure asylum seekers are integrated into the community safely and cohesively, the government said it has increased the number of community liaison officers from 135 to 320, which includes 30 refugees.

Mr Adeang said the Australian government would support Nauru with "safety, security and law enforcement", including providing more help from Australian police.

As Fairfax Media has reported, there have been numerous incidents of refugees living on the island being attacked, and refugee advocates say many are too scared to leave the detention centre, despite being allowed to.

The centre has been the subject of a litany of alarming allegations, including the sexual assault and mistreatment of asylum seekers.

In August there were 653 asylum seekers waiting on the outcome of their refugee claims, comprising 446 men, 114 women and 93 children.

The Human Rights Law Centre pointed to a High Court of Australia case due to be heard this week challenging the lawfulness of the Australian government's role in the Nauru detention centre, claiming this was the catalyst for the "eleventh hour" implementation of an open centre policy.

"[The Nauru developments] in no way address the fundamental injustice of leaving men women and children languishing indefinitely on a tiny island ... there [are] serious safety issues and no real future for them beyond it," the centre's director of legal advocacy Daniel Webb said.

Save the Children had campaigned for greater freedom of movement for asylum seekers, saying detention is detrimental, especially for children. Acting chief executive Mat Tinkler on Monday welcomed the open centre policy.

"Now these children and families who have sought asylum but previously been locked up, will instead be able to move about the island freely and when they choose," he said.

The organisation also supported an increase in refugee determinations, saying new permanent accommodation was being constructed for families and single refugees.

Save the Children has also urged the Australian government to identify suitable third-country resettlement options to provide a permanent solution for refugees.

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