'No agreement' on Iran asylum seeker deal

Iran has poured cold water on Australia's bid to send failed asylum seekers back to their home country.

Iran's policy is to refuse involuntary returnees but Foreign Minister Julie Bishop this week confirmed she was in early stage negotiations to send back thousands of Iranian asylum seekers.

Iranian Ambassador Abdolhossein Vahaji has told Fairfax Media on Friday there is no agreement: "No improvement in that regard".

Asked about the prospects of securing a deal to deport Iranian asylum seekers involuntarily, Immigration Minister Peter Dutton said the government was working with a number of partners behind the scenes.