New Zealand will spend $3 million to provide essential services for refugees and asylum seekers on Manus Island and Nauru while still putting pressure on Australia to accept an offer to resettle 150 people.
Prime Minister Jacinda Ardern revealed the spend after a second conversation in two days with Prime Minister Malcolm Turnbull over Canberra's handling of the issue.
Meetings have also been held by officials from both sides and Ardern's Government will begin work to expedite processing if and when the offer is taken up.
That is more progress than New Zealand has seen on the offer, first made by former prime minister John Key four years ago, in some time, Ardern said.
But it's still expected to take around five months to process and resettle any refugees sent to New Zealand and there remains a need to care for those on the islands in the interim, she said.