Barack Obama says Australia can be a partner in ensuring disputes around the South China Sea are settled peacefully.
The US president has signalled he wants to work more closely with Australia and Japan on maritime issues, including the South China Sea, as he announced $US250 million ($A352.34 million) to help Southeast Asian countries.
Mr Obama has made the "pivot" to the Asia-Pacific a core part of his strategic policy, as the US seeks to ensure China abides by international rules, especially in the South China Sea where some territory is disputed by neighbouring countries.
Prime Minister Malcolm Turnbull and Mr Obama discussed freedom of navigation and maritime rules during wide-ranging talks in their first leader-level meeting on the sidelines of the Asia Pacific Economic Co-operation forum in Manila on Tuesday.
Mr Obama said since neither the US nor Australia had claims over the waters, it was important they worked together.
"Simply to uphold the basic principle that these issues should be resolved by international norms and rule of law, and peacefully settled," he told reporters in Manila on Tuesday.
Mr Turnbull said both sides agreed that "big changes" in the region should occur peacefully and in accordance with international norms.
"That's absolutely vital for the continued peace and security of our region."
The South China Sea is crucial for trade and the flow of resources.
APEC members China, Vietnam, Malaysia, Brunei and the Philippines have rival claims, and Australia recently backed the right of the US to sail a warship within 12 nautical miles of one of China's artificial islands there.
Before the meeting, Mr Obama toured the flagship of the Philippines Navy that operates missions around the disputed Spratly Islands.
The BRP Gregorio del Pilar is a former US coast guard ship acquired by the Philippines in 2011.
The president also announced funding for the Philippines, Vietnam, Indonesia and Malaysia to improve their maritime capabilities.
"My visit here underscores our shared commitment to the security of the waters of this region and to the freedom of navigation," Mr Obama said.
The Philippines will get two more ships out of the deal - a research vessel to map territorial waters and a coast guard cutter able to conduct long-endurance patrols.
The plan also involves co-ordinating with Australia and Japan on maritime security "to align and synchronise regional security and law enforcement assistance programs for maximum effect".
The US will lift the ban on some of the "maritime-related lethal capabilities" of Vietnam, which will allow that country to operate more closely with the US, Australian and other navies.
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