UPDATE: A group of asylum seekers appears to have arrived on Christmas Island undetected.
Christmas Island residents said a group of asylum seekers were discovered wandering on a remote road on the eastern part of the island this afternoon.
They claimed to have arrived on the island on Monday when their boat came ashore at the remote Dolly Beach.
Another bigger group remained behind at the beach while others went for help.
They said there had been no fatalities.
Immigration Minister Scott Morrison released a statement to say authorities were responding to an incident on Christmas Island of an "unconfirmed nature".
"Border Protection Command has received reports of an incident of an unconfirmed nature on the south-eastern coast of Christmas Island," the statement said.
"Details of the incident are not clear at this point and persons who were involved in this incident are being questioned by on-island agencies.
"On-island agencies and Border Protection Command assets are also responding and are on scene.
"Updates will be provided when further information is able to be confirmed."
A man identified as Chris said he had heard a boatload of asylum seekers had run aground on Greta Beach.
“Apparently their boat has wrecked,” he told Macquarie Radio. “The Navy have raced over there. I heard the situation was quite bad.”
Chris said the beach was small and surrounded by extremely high cliffs.
It is believed the boat arrived about 11am.
Local residents said the alarm was raised after eight dehydrated people from the wreck sought help from islanders.
Christmas Island shire president Gordon Thomson told ABC radio that about 30 passengers from the stricken boat had been living on a remote beach on the island for days, surviving on coconuts and crabs.
There were reports that the incident had delayed plans to offload people from two asylum seeker boats at the wharf.
The incident follows the arrival of an asylum boat with 60 people on board overnight.
Officials on Christmas Island said a vessel was intercepted last night.
The passengers had been transferred at sea to a bigger border protection vessel.
The intercepted vessel is the second to arrive this week. Another carrying about 30 passengers was intercepted off Christmas Island on Sunday.
Foreign Affairs Minister Julie Bishop is in Indonesia today to hold talks with her counterpart Marty Natalegawa as part of major diplomatic efforts to repair relations with Jakarta in the wake of the presidential spying row.
The Indonesian President has made clear his fury at revelations Australian spies bugged his phone and the handsets of his wife and inner circle.
President Susilo Bambang Yudhoyono decreed that all co-operation with Australia on border security matters was on hold until Australian Prime Minister Tony Abbott agreed to a new code of conduct to govern relations.
Military and trade relations between Australia and Indonesia are also under a cloud.
Mr Morrison had declared the Australian Government was getting the upper hand over people smugglers, pointing to the drop in numbers of boat arrivals since the Coalition came to power.
But the Government does not look to have managed to turn back any asylum vessels to Indonesia - despite promising it would during the election campaign.