Cambodian Prime Minister, Hun Sen, says his country is ‘preparing’ to receive more refugees from Australia in a controversial deal that has cost the Federal Government $50 million.

In 2014, Australia signed a four-year deal with Cambodia, committing an extra $40 million in aid in exchange for resettling refugees from offshore detention centres in Nauru.

The deal has been labelled an expensive failure with just three of seven resettled refugees from Nauru remaining in Cambodia.