Australia plans to sign a free trade agreement (FTA) with Malaysia within a year, Prime Minister Julia Gillard says.
She has agreed to a request from her Malaysian counterpart Najib Razak to fast-track talks after meeting with him in Canberra on Thursday.
"I've agreed that that is a good idea," Ms Gillard told reporters.
"We will conclude this free trade agreement between our two nations within the coming year and we want to see it concluded and signed within the anniversary of this visit next year."
The statement comes during the visit of the Malaysian leader to Australia.
Najib Razak 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 also 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.
