Around 400 people are refusing to leave the camp in protest at indefinite detention, and fear being forcibly evicted.
In a statement on Sunday, Immigration and Border Security Minister Petrus Thomas urged refugees and asylum seekers still in the processing centre they must leave by Monday "so that they can have access to basic necessities such as food, water, medical care and security and that the work on decommissioning of the facility can be completed for the PNG Defence Force to take complete control of their land and property".
Some locals are angry at what they perceive as preferential treatment for the asylum seekers, many of them well educated, in a poor, rural society, and some of the detainees have come under attack when on release from the camp.
"They are destroying our shelters", said Behrouz Boochani, a Kurdish journalist from Iran, detained for more than four years. "They also demolished the well we built". "The refugees are only watching them", he said.
In Sydney, about 200 protesters picketed a fundraiser for the ruling Liberal Party, heckling arriving guests and demanding that the men be allowed to settle on the mainland.
Those now residing inside the closed processing centre have cited safety concerns, claiming they face attack at the hands of locals at new facilities near the main township of Lorengau.
"It is enough for people to imagine themselves, only for a moment, in the place of a refugee imprisoned in Manus", he wrote.
Hundreds of men have refused to leave the Manus Island camp in an increasingly tense stand-off with authorities since Australia declared the facility closed on October 31 and shut off electricity and water.
Despite widespread criticism, Canberra has defended its offshore processing policy as stopping deaths at sea after a spate of drownings.
Police said that 379 of the 606 men at the male-only camp remained after a Monday deadline without power or running water.
Liberal Democrats Senator David Leyonhjelm warned for Australia to take it up would be "a fatal mistake, literally a fatal mistake".
Protests in support of asylum seekers and against the immigration policy, which has been criticised by rights groups including Amnesty International and the UNHCR, have been planned across Australia.