Australian Prime Minister Julia Gillard on Tuesday said she is optimistic on her plan for establishing a regional refugee processing center, despite continuing signs of reluctance on the part of East Timor.

Immigration Minister Chris Bowen is in Dili of East Timor to hold talks with President Jose Ramos Horta about establishing a facility.

Australian Labor frontbencher Craig Emerson on Tuesday indicated that East Timor's government, after Tuesday's discussions with Bowen, is positive about establishing a regional asylum seeker processing center. Officials from both countries will meet again next month, with the aim of developing a proposal for the centre by next year.

"The message has been the door is open for dialogue," Gillard told Herald News in Brisbane.

"I am determined about it, because I believe that a regional protection framework and a regional processing centre would take away from people smugglers the very product they sell, the very incentive to get on a boat that they then sell to desperate people for their own profit."

Dr Ramos Horta on Monday outlined a strict set of conditions, including a requirement that the centre be temporary, and the estimated 60 million dollars (59 million U.S. dollars) price for the centre.

Opposition legal affairs spokesman George Brandis criticized Gillard's plan, saying it was pointless talking about something that would never happen.

"This is a problem of the Labor party's creation," Brandis told Herald News. "It (Labor) does not believe in a strong border protection policy."

Bowen's trip to East Timor came as the government continues to face pressure on the asylum seeker issue due to overcrowding and its inability to stop the flow of boats.

There are now more than 5000 people in immigration detention in Australia, while seven boat has been intercepted in Australian water last week.

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