Prime Minister Peter O'Neill has confirmed that Papua New Guinea's government will stop issuing visas on arrival for Australians, although the ban has yet to come into effect.
The ban, expected to come into force after Prime Minister Peter O'Neill signs off on it, will mean Australian passport holders will need to apply from home before visiting their closest neighbour.
In recent days stories have circulated on PNG social media the nation's National Executive Council, a cabinet-like body, approved the ban when it met last week.
PNG's Prime Minister, Peter O'Neill, has confirmed to a local newspaper that a cabinet decision has been made.
Mr O'Neill denies the plan discriminates against Australians.
A spokesperson for the Department of Foreign Affairs and Trade (DFAT) said Foreign Minister Julie Bishop would seek clarification on the issue when she next visited PNG.
Australian High Commissioner Deborah Stokes is also seeking clarification from the PNG government.
Australians have previously been able to apply for a 60-day tourism visa upon arrival in Port Moresby.
When asked if a ban on visa on arrivals will be a blow for PNG'sstruggling tourism industry, PNG's Tourism Promotion Authority (PNGTPA) spokesperson Colin Taimbari said "definitely", but declined to comment further.
PNG already has visa-on-arrival bans for all African countries, all Middle Eastern countries and all Caribbean island states.
It also bans visas on arrival for Chinese, Vietnamese, Indian and Russian nationals, among others.
In November 2013 it was reported Mr O'Neill threatened withdraw visas-on-arrival arrangements with Australia unless Australia reciprocated.
"This visa on arrival business for all Australians will be withdrawn by the following year if we don't get a similar arrangement with them," Mr O'Neill told the ABC.
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