Australian officials are still hopeful of signing a significant security and development deal with Vanuatu despite the agreement falling through at the last minute.

Prime Minister Anthony Albanese travelled to the Pacific nation's capital Port Vila where he planned to formally sign the Nakamal Agreement, which would've seen Australia spend around $500 million helping Vanuatu with its climate, security and economic goals.

The deal was aimed at cementing Australia's influence in the small island nation in a bid to counter China's growing presence in the Pacific.

But Vanuatu's Prime Minister Jotham Napat said some of the wording needed further discussion, particularly around "critical infrastructure."

Mr Napat didn't name China directly, but expressed concern the deal could restrict his c

See Full Page