By Kirsty Needham

SYDNEY (Reuters) -Australian Prime Minister Anthony Albanese, who departed for Vanuatu on Tuesday, said in a radio interview that a landmark security and development agreement with the Pacific island nation will not be signed as expected.

The Vanuatu deal is one of two major security agreements Australia had expected to sign with Pacific island neighbours this month, as Canberra seeks to block China from expanding its security presence in the region.

Vanuatu Prime Minister Jotham Napat’s office, which last month said the Nakamal Agreement was finalised and would be signed by the two leaders in September, did not respond to a request for comment on Tuesday.

Vanuatu has been seen as close to Beijing, its largest external creditor, after Chinese banks extended loans for

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