Her remarks were widely interpreted as inferring that the tiny island nation would be the site for such a centre, drawing a hostile response both domestically and in aid-dependent Timor.
Gillard moved late Thursday to shift the debate away from East Timor as opposition mounted, denying she had definitively said the fledgling nation would be home to the centre.
"I’m happy to be judged on what I say, and what I said in the (policy) speech was not that," Gillard told commercial radio.
"I’m not going to leave undisturbed the impression that I made an announcement about a specific location."
The prime minister, who deposed former leader Kevin Rudd in a lightning coup just two weeks ago, said the ultimate destination would be decided through regional negotiation.
"We