A defence treaty with Papua New Guinea would bring the relationship with Australia's closest neighbour even closer, the prime minister says, despite delays in putting pen to paper.

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Anthony Albanese is in Port Moresby as PNG marks its 50th anniversary, with more celebrations to take place on Tuesday.

The anniversary is set to coincide with Australia and PNG agreeing to a new landmark security agreement, although it has yet to be formally signed off.

The prime minister said the treaty would be significant.

"This agreeme

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