China has demanded all be sent home. Beijing has filed a formal objection to Palau's mission to the United Nations, Toribiong said. Palau, however, has no diplomatic relations with China. It recognizes Taiwan instead.

If the deal goes through, the Uighurs will be given work permits.

"If they come to Palau and become constructive, positive, friendly residents, it will be OK," he said. "We have 445 Muslims living with us right now. We have no problems."

About 30 percent of Palau's inhabitants are foreigners, mainly Filipinos and Bangladeshis. The majority of the nation is Christian.

Secretary of State Hillary Clinton has been involved in the negotiations:

In a letter to Toribiong last week about resettling the detainees, Secretary of State Hillary Clinton said a "successful resettlement arrangement would deepen the already strong and special relationship between the United States and Palau and help us move toward the closure of the Guantanamo Detention Facility, a problem of global concern." A copy of the letter was obtained by The Associated Press.

Palau's president, Johnson Toribiong, said "Already a handful of locals have asked about employing and housing the Uighurs."