Sydney – Australia on Wednesday denied refugee status to the last member of a group of 43 asylum seekers from the restive Indonesian province of Papua.

Immigration Minister Amanda Vanstone said the man's application was rejected because he was eligible to live in another country and had not exhausted avenues to seek asylum elsewhere.

His was the final case reviewed by Australian officials who granted temporary asylum to 42 other Papuans in March, prompting a diplomatic row with Indonesia.

"We believe this person has the right to re-enter and live in a third country," Vanstone told reporters in Adelaide, but refused to identify the asylum seeker or the country.

However, media reports identified the man as the 29-year-old son of a prominent pro-independence movement leader in Papua. His mother is believed to be a Japanese citizen living in Jakarta.

Indonesia reacted furiously to Australia's decision to grant asylum to the 36 adults and seven children who arrived from Papua by boat in January, and claimed they faced persecution if they returned. Jakarta withdrew its ambassador from Canberra over the controversy, rekindling memories of strained relations in 1999 when Australia supported East Timor's ballot for independence.

Seeking a decision on the case, lawyers for the 43rd asylum seeker told the Federal Magistrates Court earlier this month that Australia was using the man as a pawn to improve its standing with Indonesia.