Prime Minister Anthony Albanese is set to welcome his counterpart from Vanuatu to Canberra.
Jotham Napat's visit next week will be his first to Australia on official business and comes as the two nations are poised to ink a $500 million partnership.
The deal is expected to commit Australian funding over 10 years for critical infrastructure, climate adaptation, budget support and economic growth.
Mr Napat pulled back from the so-called Nakamal Agreement in September after some in his government raised concerns it would undercut Vanuatu's sovereignty.
However, talks are ongoing.
China has also pursued a pact with Port Vila, called the Namele Agreement, with Foreign Minister Penny Wong previously noting Australia was in "a state of permanent contest in the Pacific".
Solomon Islands Prime Minister Matthew Wale recently raised the prospect of a Pacific-wide security deal to counter Chinese influence with Mr Albanese.
Pacific Island Affairs Minister Pat Conroy has told AAP Australia would certainly be open to pursuing such an idea.
"We've got a number of bilateral security agreements ... but ultimately, we turn up, we listen and act on the Pacific priorities," he said.
Mr Albanese is expected to travel to Honiara in July to meet with Mr Wale to progress negotiations and will visit Fiji, where a new diplomatic agreement is on the table.
Mr Albanese's audience with Mr Napat in Canberra will be their second.
He says the Pacific Islands leader's visit will reaffirm a commitment to and elevation of the bilateral relationship between Australia and Vanuatu.
“We share a deep and enduring partnership based on mutual respect and common values," Mr Albanese said on Saturday.
“Strengthening our ties ... is central to our shared ambition for a peaceful, stable and prosperous Pacific region.”
Mr Albanese will host Mr Napat and his delegation at parliament house.
