"A new facility would be built to accommodate 192 beds, including provision to accommodate 300 people in the event of a mass arrival," he said.
Mr Woodhouse said the centre played a crucial role in helping refugees adapt to their new life in New Zealand, but many of the ageing buildings were beyond repair and needed to be replaced.
Mr Woodhouse said he hoped the arrangement would see new and upgraded buildings worth around $15 million at the refugee centre by the end of 2014.