Manus Islanders are cautiously optimistic about having up to 3000 asylum seekers as neighbours.
Landowners living within a few kilometres of the Australian-run processing facility on Manus' Lombrum Naval base say they welcome the potential increase in asylum seekers.
Prime Ministers Kevin Rudd and Peter O'Neill on Friday announced asylum seekers trying to enter Australia by boat will be sent to PNG and may be settled there if found to be genuine refugees.
Nutt Point village elder Andrew Yanduo said he hoped an increase in asylum seekers would bring with it jobs and development.
"I'm very happy with the government's decision to send asylum seekers here," he said.
"We have the land. The job opportunities are very good. We accept it."
Another man who worked as a guard in the temporary facility, but declined to be named, said he looked forward to widespread employment opportunities a larger centre might bring.
But he says he would have preferred there to have been wider consultation from the government.
"I was surprised about it," he said, adding that the decision felt like the government had "scooped around" landowners.
"Maybe the government, the Papua New Guinea government, will give more funding to the province.
"Especially education, hospitals, roads and boats and bring more tourists."
As part of the deal, the Australian government has agreed to upgrade Manus Island's Lombrum Naval base, airport and roads as well as new health centres and schools.
Neither Mr Rudd nor Mr O'Neill are willing to publicly nominate the number of asylum seekers they expect to be sent to Manus.
However, local MP Ronnie Knight has said 3000 is the figure Mr O'Neill told him less than nine hours before announcing the new arrangement in Brisbane.
Manus is actually a closely knit collection of islands just two degrees from the equator.
Amid constant heavy rains and baking heat the roads in the capital, Lorengau, are in total disrepair.
Sitting on a lush green oval in the centre of town is the central market, where Manusians sell fresh fruit, vegetables, betel nut and smoked fish.
Retailer Joe Ndrassal says he wants to see up to 50,000 asylum seekers resettled on Manus.
"We have heaps of land here in the province, and our population (50,000) is too small," he said.
"Giving hospitality is good."
He says he isn't concerned about a potential culture clash between locals and the newly arrived.
"The number of Muslims coming won't make a difference, I think," he said.
"Most people in PNG are Christians, so they can be socialised. We can influence them. They can convert."