It said it was providing consular assistance to "the family of an Australian man who has been reported as being detained in North Korea".
"In connection with our obligations regarding confidentiality we will not give further comment", added the Ministry spokesman.
In addition to studying at Kim Il Sung University - where Kim Jong-un also studied - Mr Sigley also runs a tour company called Tongil tours that organises trips into North Korea for foreign students. "We work through the Swedish government in North Korea and all of these steps are underway", he said.
He is one of a small body of global students at the university and described himself as "the only Australian living in North Korea" in a piece he wrote in March for Britain's Guardian newspaper.
"I'm enrolled in a master's degree in Korean literature in the university's postgraduate school", he wrote.
Australian officials are no closer to working out what has happened to him, despite making urgent inquiries with secretive North Korea, with the help of Sweden.
Official media in North Korea haven't mentioned the reported arrest.
"It has not been confirmed that Alek has been detained in the DPRK", they said.
Sigley had been visiting the country on-and-off as a tourist and tour operator for many years, even last year choosing to host his wedding in Pyongyang.More news: Frank Lampard excused from Derby's pre-season amid Chelsea talks
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Fluent in both Korean and Mandarin, he was an active social media user and his sudden silence has sparked fears about the 29-year-old's welfare.
The United States imposed a ban on its citizens travelling to North Korea in September 2017, with a few exceptions for humanitarian workers or journalists.
"As a long-term foreign resident on a student visa, I have almost unprecedented access to Pyongyang".
Earlier, federal Attorney-General Christian Porter said the Australian was in a very serious situation.
Dr Petrov believes North Korea may have shut down his friend's communication channels before Donald Trump's expected visit on Sunday to the demilitarised zone that separates North and South Korea.
Australia's foreign affairs department said it has received a report that a citizen had been detained in North Korea.
The treatment of foreign citizens, most usually from the United States, by the secretive North has always been a contentious issue. As the country pursued diplomacy with the United States previous year, it released three American detainees in what the nation's propaganda described as a gesture of goodwill.
The most notorious case was that of American student Otto Warmbier who was arrested in 2015 for allegedly attempting to steal a propaganda poster from the hotel he was staying in - possibly as a prank.