Australia pledges $40m for Tuvalu during PM Teo's visit

Australia will provide up to $40 million in aviation and connectivity support to Tuvalu as the two nations progress a security pact.

Prime Minister Feleti Teo will meet with Prime Minister Anthony Albanese after meeting with Foreign Minister Penny Wong and Pacific Minister Pat Conroy on Tuesday.

He will also meet with opposition foreign affairs spokesman Simon Birmingham during his Australian trip this week.

Australia provides the Pacific nation a defence guarantee under the Falepili Union treaty but it sparked controversy with concerns about Tuvalu's sovereignty, as Canberra was given oversight of their security arrangements.

Senator Wong signed a subsequent agreement and memorandum of understanding during her visit to Tuvalu in May that outlined the nation's sovereignty after Mr Teo raised concerns when coming to office earlier this year.

Australia has also helped to deliver the Pacific nation's first undersea telecommunications cable to improve connectivity, climate change adaption projects and budget support.

A new Guardian-class patrol boat will also be delivered in the coming months.

Mr Albanese welcomed the Tuvalu government's plan to open a new diplomatic mission in Canberra.

"This is a clear demonstration of the growth of the bilateral relationship and will help support the growing Tuvaluan diaspora in Australia," he said in a statement.