Sudney: After it was discovered a Russian diplomat was squatting on the property as a result of the government's decision to cancel the lease, Australia's Prime Minister Anthony Albanese said on Friday that the contested site of a proposed Russian embassy was secure.

Australia passed a law earlier this month, citing national security concerns, to stop Russia from moving its embassy from a suburb of Canberra to a prime location near the Chinese embassy and the parliament.

A Russian diplomat was reportedly squatting on the property on Thursday while being watched by police in Australia, who are unable to arrest him because of diplomatic immunity.

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"A man standing in the cold on some grass in Canberra is not a threat to our national security," Albanese said at a news conference on Friday. "Australia will stand up for our values and we will stand up for our national security We feel secure in our position and the site is secure."

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The Canberra-based Russian embassy declined to comment.

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In retaliation for Australia's own protracted sanctions regime against the nation, Moscow on Wednesday denied entry to 48 Australians.