The government of Papua New Guinea has agreed to a landmark defence treaty with Australia, elevating the island nation to the status of an ally.

PNG Prime Minister James Marape will likely announce the deal on Thursday, before attending the NRL Grand Final in Australia on Sunday.

The Pukpuk defence treaty was previously left up in the air after Prime Minister Anthony Albanese's visit to the island nation .

However, the PNG cabinet has signed the deal with an "absolute majority", as revealed by The Australian's Ben Packham.

The Albanese government had courted PNG in the months ahead of the deal, agreeing to fund a $600 million NRL team and parliamentary ministerial wing .

The treaty will commit Australia and Papua New Guinea to consult and act together in the event of a security

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