ABC Net Sun 5.26pm:
Tampa nears Christmas Island
The Norwegian tanker Tampa is moving into calmer waters closer to shore near Christmas Island for a ship-to-ship transfer of the 460 asylum seekers onboard.
At the same time, a Navy transport ship has also arrived close to Christmas Island and is being reprovisioned with supplies that the Government earlier landed on the island.
The Government has confirmed additional Navy vessels have been sent to the area.
The HMAS Manoora, a transport ship capable of moving up to 450 people and travelling 6,000 kilometres, is now visible offshore.
Military sources say a refuelling vessel has also been sent to the area and that preparations are now well advanced for a possible ship-to-ship transfer.
Sources say the decision on when to begin hinges on the outcome of a Federal Court hearing in Melbourne.
Independent sources have also confirmed that the asylum seekers onboard the Tampa have been told of the government's plan to send them to either New Zealand or Nauru.
Papua New Guinea has agreed to assist Australia in the transportation of the asylum seekers.
Describing the arrangement as a truly Pacific solution, Prime Minister John Howard says the troop ship could start accepting the asylum seekers as early as today.
"The Manoora is ready to take people onboard. The idea is that they should be transferred to the Manoora, then the Manoora will sail to Port Moresby. They'll then be transferred to aircraft that will take them to Nauru and to New Zealand," he said.