A major riot has broken out at a remote detention centre for asylum seekers in the Indian Ocean.

Australia's immigration department said there was a "major disturbance" at the detention centre on the country's territory of Christmas Island, with reports of damage but no injuries.

Refugee advocates said the riot broke out following the death of an asylum seeker who escaped from the centre on Saturday. The man's body was found the following day at the bottom of cliffs on the island. His death is being investigated.

The department denied there was a "large-scale" riot, but said staff had withdrawn from the compound for safety reasons.

The problem began when a small group of Iranian detainees staged a peaceful protest following the asylum seeker's death. Other detainees then began damaging the property, starting several small fires, according to the department.

The group leading the unrest appeared to be detainees being held there because their visas were cancelled, rather than asylum seekers, the department said.

New Zealand MP Kelvin Davis, who recently visited the island, said a New Zealander held there told him detainees had taken over the centre.

"They have put holes in the walls, so even if they are rounded up and put back in the cells they actually can't be locked up," Mr Davis said.

The immigration department said the perimeter was secure.

Immigration minister Peter Dutton said one detainee caught up in the fray had requested medical assistance for an unspecified reason, but no serious injuries had been reported.

New Zealand prime minister John Key said he was told there may be a few New Zealanders involved in the unrest and if so, they were doing nothing to help their case to stay in Australia.