Asylum seekers picked up in Cocos Islands

A wooden boat carrying Sri Lankan asylum seekers has arrived close to the Australian territory of the Cocos Islands, locals say.

Mary Saraya told AAP the vessel was spotted by locals working on a boat on Monday and Australian Federal Police and Australian Border Force officers had intercepted it.

"They were loading containers and said they saw a boat with Sri Lankan asylum seekers," she said.

"Customs then came and took them away. I am not sure if the boat was taken too."

Several other locals also said the boat had been spotted.

The AFP and Border Force referred AAP to Immigration Minister Peter Dutton, but a spokeswoman said it was a longstanding policy not to comment on operational matters.

The Cocos Islands are in the Indian Ocean and closer to Java than Western Australia's northwest coast.

It is believed to be more than 18 months since an asylum-seeker boat was intercepted in Australian territory.