Almost 2000 Manus Island detainees will receive $70 million in compensation after the Australian government agreed to settle a class action.

The settlement will be distributed between 1905 asylum seekers, with the payments to be relative to the duration of their detention and their treatment at the Manus detention centre.

Lawyers from Slater and Gordon said the settlement plus costs – estimated to be $20 million – was made with no admission of liability.

The detainees sought compensation for alleged physical and psychological injuries they claimed to have suffered as a result of the conditions in which they were held.

The class action also sought damages for false imprisonment after the Papua New Guinea Supreme Court ruled the detention of asylum seekers on Manus Island was unconstitutional.

The Australian government and the companies that have managed the Manus Island Regional Processing Centre – G4S Australia and Broadspectrum (formerly Transfield Services) – denied the claims.

The class action covered the majority of people detained between November 21, 2012, and December 19, 2014, Slater and Gordon said.

A six-month trial was due to begin in the Victorian Supreme Court on Wednesday. The barrister for the detainees, David Curtain QC, told the court the parties had instead been able to reach agreement in the matter.

The lead plaintiff, Majid Karami Kamasaee, was detained on Manus Island for 11 months from September 2013. He has since been detained at a Melbourne immigration centre, ABC reported.

Mr Kamasaee, 35, tried to reach Australia by boat from Indonesia after fleeing Iran on claims he was persecuted for converting to Christianity, according to a statement read by lawyer Ebony Birchall on Wednesday.

“I was in danger because of my religion, because I was a Christian. I came to Australia seeking peace but I was sent to Manus, which was hell,” the statement said.

Slater & Gordon’s (L-R) Rory Walsh, Andrew Baker and Ebony Birchall at a press conference on Wednesday. Photo: AAP

“The way we were treated at the Manus Island detention centre was degrading and cruel. We had very little access to medical treatment. I was severely burned in a fire when I was a child and needed more than 30 operations, including skin grafts. When I arrived on Manus they confiscated my medicine,” Mr Kamasaee claimed.

“Everyday in the harsh sun, my skin felt like it was on fire. The scars got worse and then developed growths. I was in pain every minute of every day of Manus Island. I cried every night until I had nothing left.

“Our voices have never been listened to but today we are finally being heard and I hope everyone’s suffering can be over as quickly as possible.”

Iranian journalist Behrouz Boochani, who is detained at Manus Island, said the group could “smell justice” for the first time in years.

“Although getting compensation is a part of justice for us, getting freedom in a safe place is more important than anything.

“We came to Australia legally seeking protection under international laws … and have been damaged physically and mentally.”

Another detainee referred to the settlement as “blood money”.

The settlement could potentially lead to the withdrawal of a separate legal action in Papua New Guinea alleging false imprisonment against the PNG government, which lawyers estimated could be worth at least $150 million to about 1000 detainees.

Lawyers Greg Toop and Ben Lomai have estimated the men in the PNG case could each receive more than 400,000 PNG kina ($A150,000-$A175,000).

The settlement of the Australian class action will be subject to court approval. The amount to be paid to each defendant, by the government and companies, is confidential.

Principal lawyer Andrew Baker believed it was the largest settlement for a human rights case in Australian history.

Majid Kamasaee was severely burnt as a child. At #ManusIsland his medicines were confiscated. He recounts his initial days in a statement. pic.twitter.com/38wcPaZ4he

— Slater and Gordon Lawyers (@SlaterGordon) June 14, 2017

“The people detained on Manus Island have endured extremely hostile conditions, but they will no longer suffer in silence,” Mr Baker said.

Mr Baker said there have been countless stories about the appalling and inhumane conditions the detainees were allegedly subjected to, and the security issues have been well documented.

Minister for Immigration and Border Protection Peter Dutton refuted the allegations and said settling appeared to be the best possible outcome for Australian taxpayers.

“The Commonwealth strongly refutes and denies the claims made in these proceedings,” Mr Dutton said.

Mr Dutton blamed the class action on Labor for handing “control of the nation’s borders to criminal people-smuggling syndicates”.

He reiterated no refugees who attempted to arrive by boat would be settled in Australia.

Greens Senator Nick McKim urged the government to resettle the men in Australia.

“For justice to be done, those people must be immediately resettled in Australia,” Senator McKim said in a statement.

“These 1900 men who sought safety in Australia have lost their freedoms, their families and their futures because of Peter Dutton’s decisions.

“No amount of money can compensate for this.”

The New Daily has contacted Slater and Gordon for comment.