Two-thirds of East Timorese asylum seekers living in Darwin have been told they can stay in Australia, subject to further checks.

Federal Immigration Minister Philip Ruddock indicated that more than 1,500 East Timorese asylum seekers were expected to be granted permanent residency in Australia by October.

Mr Ruddock has already intervened to reverse decisions to return a group of 379 asylum seekers, subject to health and character tests, and is reviewing another 200 cases, which he promised would be dealt with as quickly as possible.

Of the 84 East Timorese asylum seekers living in Darwin, 56 had received letters indicating they needed to undertake health and character tests, a spokesman for federal Country Liberal Party Senator Nigel Scullion said. Of those, 36 applicants had already completed the tests and were awaiting final approval from the minister, he said.

NT Ethnic Affairs Minister Kon Vatskalis welcomed Mr Ruddock's decision, but said it was long overdue with some residents living on no money and surviving on charity from friends and supporters. "I welcome Mr Ruddock's move but I feel that people have been put through hell and back before this decision was eventually made," Mr Vatskalis said. He said he was concerned about the remaining East Timorese whose futures remained unclear.

Asylum seeker Domingos Da Silva, who has not yet received a letter, said he was happy for those allowed to stay but anxious about his own family's future. Mr Da Silva, who set up home in Darwin nine years ago after fleeing Indonesian-controlled East Timor, said worrying about whether his family of five children would be deported to East Timor kept him awake at night.

"I'm just worrying about the future of my kids," he said. "If I have to go back I have to start from zero again ... especially my kids, they have to start from zero. "They [would] have to learn tetum again, to learn Portuguese again."

The family is one of several in Darwin living on charity after their asylum seeker assistance payments were cut when they lost their Refugee Review Tribunal appeal several months ago.