Australia and Fiji have made "significant progress" towards a new bilateral treaty that will cover security and economic cooperation.
Fijian Prime Minister Sitiveni Rabuka held talks with Australia's Foreign Affairs Minister Penny Wong and Pacific Minister Pat Conroy in Suva on Wednesday.
Rabuka said the two countries will be upgrading their current 'Vuvale Partnership' into the 'Vuvale Union'.
"This represents a huge step-up in our relationship," Rabuka said at a joint news conference, describing security as "a central pillar in our partnership".
"I firmly believe that the foundation upon which our partnership is built is anchored in shared values and it is designed to deliver enduring outcomes across security, economic cooperation and people to people connections."
Rabuka said the union will also operationalise the Pacific Islands Forum-endorsed 'Ocean of Peace' declaration which aims to keep the region free from militarisation.
He said the union positioned Australia as "trusted partners working together to strengthen resilience, safeguard stability and advance the collective interests of our region".
Wong said the union will be guided by "durability, sovereignty, and regionalism" and "reflects our shared understanding that in a world that is challenging and in a world that is more contested, we are stronger together".
"We are stronger together in agreement that is grounded in the 'Pacific Way' and gives practical expression to the Ocean of Peace declaration endorsed by all of the Pacific," she said.
The Foreign Affairs Minister also confirmed Australia will provide AU$30 million in targeted budget support to assist with Fiji's response to the global fuel crisis.
Rabuka said Fiji stood with the decision by the Forum's Troika leadership last month to activate the Biketawa Declaration and adopt a regional response to managing fuel issues faced by Island countries.
Wong said Australia was working to ensure all opportunities were taken to guarantee fuel supply for the region, noting Fiji's central role.
"We understand the extent to which this is being felt as price shock in Fiji, and we want to provide our assistance. It also will reinforce your role as a supply and storage hub for so many Pacific nations."
Motorists in Fiji lined up at petrol stations to fuel up. Photo: Facebook / Fiji News & Sports
"I have just come back from a visit to North Asia, the countries of Japan, China and Korea. And prior to that, the Prime Minister and I were in Southeast Asia, including Malaysia and Singapore and Brunei, all critical countries for our region, and also critical countries for energy markets," Wong said.
"We use those opportunities to advocate to those key suppliers, those key trading partners, the importance of keeping fuel supplies flowing to our region."
Pacific leaders have reportedly moved to invoke the Pacific Islands Forum's highest regional crisis response measure over a looming fuel crisis.
The Pacific Islands Forum troika Leaders have agreed to activate the Biketawa Declaration, placing the region on a co-ordinated high alert framework to respond to the unfolding energy security crisis.
