Prime Minister Julia Gillard has welcomed her Malaysian counterpart, Najib Razak, to Parliament House in Canberra.
The Malaysian leader received a 19-gun salute from the Australian army as he entered the public forecourt.
The two leaders stood side-by-side as the anthems of both nations were played.
Mr Najib visit comes after Ms Gillard visited Malaysia late last year but couldn't meet with the Malaysian prime minister because he fell ill with chicken pox.
Ms Gillard is likely to brief Mr Najib on her proposal for a new regional protection framework for asylum seekers, including her plan to place a processing centre in East Timor.
