Prime Minister Julia Gillard says she is "open'' to further discussions with the opposition on offshore processing but is standing by the government's Malaysia solution.

In an interview with ABC TV this afternoon, Ms Gillard said that people wanted to see MPs find a solution to people risking their lives at sea. "People want to see us put the politics aside and act to get something done," she said.

Ms Gillard said that to do this, MPs needed to work together "across the parliament".

The Prime Minister, who has just arrived home after a week overseas, said that she was willing to revisit the compromise on offshore processing that Labor and the Coalition discussed at the beginning of the year.

That would see the 'Malaysia solution' enacted in combination with offshore processing on Nauru and Manus Island.

"I do want to be very clear that we are willing to enact that compromise which contains elements of the opposition's policy," she said.

Ms Gillard stood by the government's Malaysia solution - which was struck down by the High Court last August - and has been opposed by both the Coalition and the Greens.

She said that the government continued to receive advice that the Malaysia deal - which would see Australia send 800 asylum seekers arriving by boat to Malaysia in return for 4000 already-processed asylum seekers from that country - was the most "effective deterrent".

Immigration Minister Chris Bowen also told Sky News this afternoon that he wanted to see the Malaysia deal as part of the mix.

Ms Gillard said it was "very regrettable" that Opposition Leader Tony Abbott had so far ruled out further policy shifts from the Coalition on the matter. She said that the government was not seeking to renegotiate with the Greens, given they were opposed to offshore processing.

"I don't believe that the Greens that are going to agree to a package of offshore processing," she said.

This afternoon before question time, both Ms Gillard and Mr Abbott expressed their regret at last Thursday's boat disaster which saw an estimated 90 suspected asylum seekers die.Ms Gillard told parliament it was a "dreadful tragedy".

"We mourn for the dead and we grieve for the living," Mr Abbott said.

Refugee groups and humanitarian advocates have called on Labor, the Coalition and, to a lesser extent, the Greens to thrash out a compromise that would break the stalemate between the government and the opposition over how to process refugees who arrive in Australian waters by boat.

Authorities called off the search for survivors last night, after the boat, carrying about 200 people, capsized 110 nautical miles off Christmas Island on Thursday.

The Greens have offered their version of a solution to "stop the boats", proposing that Australia double its annual humanitarian refugee intake.

Greens senator Sarah Hanson-Young said her party does not want people to make the dangerous sea journey to Australia. Instead, they want Australia to increase its annual refugee intake from the current figure of 14,000 to 25,000.

"That would go a long way to dealing with the numbers of people [coming] currently," she told ABC radio.

Today, outspoken Liberal backbencher Russell Broadbent called for a response to the asylum seeker issue, including more policing and cooperation with Australia's northern neighbours.

"It is very clear now that the Australian people are demanding that we do something," he told ABC TV.

Mr Broadbent said the issue was "complex" and that he did not support the Malaysia solution. "We'd be trading people for a policy solution," he said.

Mr Broadbent said it was not about a bipartisan response.

"That's not the answer," he said. "It is good policy that's the answer."

Mr Broadbent's support for renewed talks has been echoed by other Coalition MPs in recent days, including Mal Washer and Judi Moylan.

But Mr Abbott has given no indication that he will seek a deal with the government on fighting the people-smuggling trade.

Yesterday, as another boat arrived with 60 people on board, Mr Abbott said what was needed was not more bipartisanship but "effective policies".

"What's needed here is not compromise for compromise's sake but policies that work," he said.

PM 'Open' To Talks On Asylum Seeker Deal