- Met with Cambodia's Interior Minister Sar Kheng: Immigration Minister Scott Morrison. Photo: Alex Ellinghausen

A possible deal to resettle Australian-bound asylum seekers in Cambodia has been heavily criticised by one of the country's longest-serving politicians who has warned against the country becoming a "dumping ground".

A member of the Cambodian opposition party, the Cambodia National Rescue Party, Son Chhay said he was appreciative of Australia's immigration policies when he was a refugee in Australia, but the possible plan to resettle asylum seekers to the impoverished country could have severe effects on its economy.

"Cambodia is not a rich country," he said. "We have to find a way to help the refugees. But not to fall under the Australian policies of dumping refugees."

The Department of Foreign Affairs and Trade confirmed that Immigration Minister Scott Morrison had met with the country's Interior Minister Sar Kheng on Thursday.

"The Minister for Immigration and Border Protection visited Cambodia to further discussions on regional co-operation on people smuggling issues, following on from the earlier visit by the Minister for Foreign Affairs," a Department of Foreign Affairs and Trade spokesman said. "Australia has ongoing engagement with countries across our region on strengthening border protection and deterring the illegal movement of people across borders.”

But refugee groups have slammed the potential resettlement plan, saying Cambodia continued to struggle with its own human rights abuses, including the death of four garment workers who were shot in January as they protested for a living wage. They say the country will not be able to cope with an influx of asylum seekers.

Sister Denise Coghlan, who is the director of the Refugee Advocacy Service for the Jesuits in Cambodia said the plan was "preposterous", and there would be serious social, cultural and economic ramifications if the plan went ahead.

"There is great amount of space Australia has and the richness of Australia, when you compare it to the job possibilities in Cambodia or the economic progress of the country, it's still very difficult for the poor people," Sister Denise said.

On Friday, Prime Minister Tony Abbott would not elaborate on the potential deal. 

“We're always talking to our regional partners under the Bali process,” Mr Abbott said. “People smuggling is a serious regional problem and we like to stay in touch with all of our partners in the Bali process and that’s what this is.”

Greens senator Christine Milne said Australia was blatantly ignoring human rights abuses in the region, and instead focusing on shipping off asylum seekers.

"Instead of getting behind the democracy movement we have Julie Bishop and Scott Morrison going there in what is a secret mission," Ms Milne said.

Mr Morrison’s visit coincided with Cambodia establishing an immigration department within its Ministry of Interior "to “facilitate the movement of non-immigrant and immigrant foreign nationals, and immigrant foreign nationals who are private investors in Cambodia”.

According to the United Nations, Cambodia has only about 70 recognised refugees and about 10 asylum seekers living in the country. 

The recent UN-backed trials against former Khmer Rouge officials has again drawn worldwide attention to the atrocities committed during the 1970s genocide, where an estimated 1.7 million people were tortured and then killed.

In 2009, Cambodia agreed with a request from China to deport 20 Uighurs seeking refuge in Cambodia after they had been caught up in clashes with Chinese authorities earlier that year. Seventeen of those remain in prison in China and some of them have been given life sentences.