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Paladin's contract is up for renewal at the end of June.

Mr Marape's comments come after Home Affairs Minister Peter Dutton told the ABC earlier this month that the "likely arrangement is that there will be a continuation" of Paladin's contract.

"The department will work with the PNG authorities. We've got to make sure we're getting value for money," Mr Dutton said.

Paladin's $423 million for services on Manus Island has been under scrutiny since it was revealed the company was given just six days to bid for a $90 million dollar tranche of the contracts it eventually won.

The Australian Auditor-General is now examining the background to the contracts awarded by Home Affairs to Paladin and is due to report in 2020.

Local media outlet EMTV reported Mr Marape's remarks were in response to a question from Gary Juffa, governor of Oro Province in the east of the country.

"The security contract is with K423 million with no PNG input. What is the PNG Government’s position? How are we handling the situation?" Mr Juffa asked.

Mr Marape's government, which was sworn in last month, has previously made similar requests for PNG firms to provide the services Paladin is now responsible for on Manus, including by sending a letter to the Australian High Commission in Port Moresby.