The Prime Minister, John Howard, says Australia may reach a uranium safeguard agreement with China next week, but will not sell uranium to India.
Mr Howard says Australia is negotiating with China, on the basis that it is a signatory to the Nuclear Proliferation Treaty, while India is not.
He says there will be no policy change regarding uranium sales to India, despite the United States promise to assist India's nuclear power program.
"It's possible that the discussions could be satisfactorily concluded so that something could be said or signed, when the Chinese premier visits Australia next week."
"As to what happens in relation to India," Mr Howard said: "Well, I've already said that there is going to be no policy change, we are not contemplating, let me put it that way, a policy change in relation to India."