A delay in signing a "crocodile" defence treaty with Papua New Guinea has "no downside", Prime Minister Anthony Albanese says, brushing aside claims it's an embarrassment for Australia.

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Mr Albanese left Port Moresby on Wednesday without the hoped-for defence pact after the PNG government's cabinet didn't sign off on the landmark agreement in time.

He and his counterpart James Marape were expected to ratify a mutual defence treaty deepening military co-operation, but only managed a communique laying out the wording of the pact.

It marks the second time in as many weeks that Mr Albanese has failed to wrap up an actively promoted security deal

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