The Australians were arrested in 2005 for attempting to smuggle heroin out of the Indonesian resort island.
Five remaining members have been serving life sentences in the country for their involvement.
Trade Minister Don Farrell said discussions were ongoing but confirmed that Prime Minister Anthony Albanese had advocated on behalf of the Australians.
The prisoners would continue to serve their sentences in Australia under the proposal, he told Sky News on Sunday.
"The proposal isn't, as I understand it, to release these people," Senator Farrell said.
"They would continue to serve their sentence, except they're serving them in Australia."
Mr Albanese raised the prisoner issue during a meeting with Indonesia's President Prabowo Subianto on the sidelines of the APEC Summit in Peru, Australian Assistant Treasurer Stephen Jones told reporters on Saturday.