The debate over whether New Zealand should take Australia's unwanted asylum seekers comes amid an uproar over what will happen to 267 asylum seekers who are expected to be transferred from Australia to the Pacific atoll of Nauru.
The issue of their fate was raised amid annual talks between Australian Prime Minister Malcolm Turnbull and his visiting New Zealand counterpart John Key.
The policy has virtually stopped asylum seekers from the Middle East and Asia attempting to reach Australia on rickety boats.
The 267 asylum seekers came from Nauru's detention camp to Australia for medical treatment or to support a relative who needed treatment.
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They refused to return to Nauru pending an Australian High Court challenge to the legality of Australia's refugee policy, but the court recently ruled against them, leaving them at risk of deportation.
Key's government reached an agreement in 2013 with Australia to resettle 150 refugees a year from Nauru and Papua New Guinea.
On Friday, Key said the offer still stands, provided the asylum seekers meet New Zealand's character requirements and are genuine refugees.
"So I can't tell you who might or might not be able to come, or whether the Australian government would want to exercise the right to do that," Key told reporters in a joint press conference with Turnbull. "All I can simply say is the offer remains on the table."
"We take into account what John has proposed ... But we do so very thoughtfully, recognizing that the one thing we must not do is give an inch to the people smugglers," Turnbull told reporters.