Nauru's entire population could be offered Australian citizenship and resettlement under a proposal being developed by the Federal Government.
Foreign Minister Alexander Downer has ordered his department to draw up options for the future of the tiny island state.
Senior officials believe Nauru will not be viable after Australian payments to maintain detention camps for asylum seekers finish.
Offering citizenship to more than 12,000 Nauruans is one of the options under consideration. Other options include Nauru being granted an uninhabited
Pacific island or a total restructuring of Nauru's finances and increased long-term Australian assistance.
Has this ever happened before? Moving a whole island of 12,000 people would be quite a logistical task.