The Australian government today gave up on its deal with Malaysia in which 800 boat people were to be swapped for 4,000 UN-certified refugees.

Prime Minister Julia Gillard's minority Labor government, recognising that it did not have enough votes to blunt a High Court ruling preventing the deportations, withdrew draft legislation that could have allowed the swap to go ahead.

The deal, announced April 7 and signed July 25, was intended to deter the mostly Middle Eastern asylum seekers who board boats in Indonesia and claim asylum when they arrive in Australia.

Over 100 boats have arrived in the 16 months Gillard has been prime minister and more than 5,000 asylum seekers have been taken into detention to await the outcome of their visa applications.

Australia will honour its half of the bargain and has already begun resettling 4,000 mostly Myanmar refugees from Malaysia.

- dpa