However Mr Turnbull said cabinet must be consulted before the government changes its policies on offshore processing, which he described as a controversial and challenging issue.

Speaking to Sky News on the ninth day of his prime-ministership, Mr Turnbull adopted a markedly softer tone on asylum seekers than that of his predecessor Tony Abbott, saying he understood the issues and all the government's existing policies were "on foot".

"I have the same concerns about the situation of people on Manus and Nauru ... as I think all Australians do," Mr Turnbull said.

"All policies change, but when we do make changes we will do so in a considered way and they will be made by the minister, myself [and] the cabinet."

Later on ABC radio, he ruled out resettling in Australia any asylum seekers in offshore detention. It leaves the government two main options: creating better conditions in detention centres and ensuring refugees are processed and settled offshore more quickly.

Mr Turnbull has repeatedly emphasised he will consult colleagues and maintain the traditions of a true cabinet government in his second stint as Liberal leader, after the party voted him out of the job in 2009 when the Coalition was in opposition.

It means the conservative flank of the party may restrain him from straying to the left on policies such as asylum seekers, climate change and gay marriage.

Mr Turnbull said offshore processing was "an area that clearly is one that is controversial, that is a challenging one, it is certainly one that close attention is being paid to".

Last month there were about 1600 asylum seekers and refugees held on Nauru and Papua New Guinea's Manus Island, including 93 children.

Under a regime instigated by the former Labor government, asylum seekers arriving on unauthorised boats are held and processed at the offshore centres, and denied resettlement in Australia.

Alarming reports have emerged from both facilities, including assault and rape of asylum seekers, inadequate medical care and poor living conditions.

Resettlement of refugees has so far been non-existent on Manus Island and extremely limited on Nauru.

Refugee advocates have been hopeful that the move to a more progressive prime minister might prompt changes in the government's hardline asylum seeker stance.

In February, Mr Turnbull refused to join Prime Minister Tony Abbott's criticism of Australian Human Rights Commission president Gillian Triggs after she delivered a scathing report into children in detention.

"The main point is the children. Children in detention is something nobody wants," Mr Turnbull said, before defending Professor Triggs' credentials.

On Wednesday Mr Dutton said he shared Mr Turnbull's concerns about asylum seekers.

He said those offshore "will not be settling in Australia" but signalled other policy changes may be considered.

"If we need to sharpen our programs, our policies, which will make it even harder for people smugglers to get through the net, that's exactly what we'll do," Mr Dutton said.

Not a single asylum seeker at Manus Island has been settled, while two have died – one during riots that swept through the detention centre and one from septicaemia after cutting his foot.

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.

Mr Dutton retained his portfolio during Mr Turnbull's ministry reshuffle, despite vocally supporting Mr Abbott before the leadership ballot.

However Mr Dutton, who has responsibility for border protection and some terrorism-related matters, was dropped from the national security committee of cabinet. Labor says this suggests Mr Turnbull holds him in poor regard.

But Mr Turnbull said during the Howard government, when cabinet processes were "the gold standard", immigration ministers did not permanently sit on the committee.

He said ministers "have to get on with their day jobs ... we've got to have an efficient government where people's time is used efficiently. This is not an issue of status".

Nauru Justice Minister David Adeang on Wednesday welcomed news that Mr Dutton would continue in the immigration portfolio, saying he was a "good friend" of the island republic.

"[Mr Dutton] understands the progress our government has made, has many connections here, and is always available when we need to discuss the ongoing partnership," he said.

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