WARNING: Aboriginal and Torres Strait Islander readers are advised that this story contains the image of a person who is deceased.

Prime Minister Anthony Albanese has admitted governments need to do better to improve the lives of Indigenous Australians, after he met with the family of Kumanjayi Little Baby.

It has been almost three weeks since the five-year-old girl was found dead in Alice Springs days after she was allegedly abducted from a town camp.

Speaking this afternoon after meeting with her family, Albanese said the "wonderful, young soul" should have had her whole life ahead of her.

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"This is a young person lost far too early under circumstances that are unbearable," he said after meeting her mother and grandparents.

"(The family) are trying to bear their way through this with dignity, with respect and it will remain something that is with them forever.

"They're proud of their much-loved daughter and granddaughter, of who she was, but also that sense of regret that she won't get to be the young woman and woman that she should have become."

Albanese said his government will work with the Northern Territory government to tackle issues facing local communities, but admitted they all "need to do much better".

"This is a time where what I want to see is different levels of government coming together with the community in the same way that the community has come together itself."

The territory government has been criticised for its response to Kumanjayi Little Baby's death, which included proposed child protection changes and an inquiry.

North Australian Aboriginal Justice Agency, the North Australian Aboriginal Family Legal Services, Central Australian Aboriginal Family Legal Service and Legal Aid NT were some of the organisations that issued a joint statement raising concerns about the proposed response.

The group said it would increase government intervention but fail to address underlying issues.

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Albanese called on the territory government to involve First Nations communities in its decision-making to create better outcomes.

"We'll work constructively with the Northern Territory government, but they also need to work respectfully with the local community, with the family, and need to make sure they involve First Nations people as well in this local community to work through these issues in the most constructive way possible," he said.

"I would say to the Northern Territory government that you'll get better outcomes if you have an inclusive approach and you have buy-in to these issues, and that's why that consultation and engagement is so important."

Albanese also criticised the territory government over the state of town camps.

"Clearly, the Northern Territory government have had responsibilities since 2012 for the town camps," he said.

"Clearly, there's a need to do more to make sure that the living conditions are improved."

The family of Kumanjayi Little Baby have called for Australians not to politicise her death as they conduct sorry business. 

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