Australia and Jordan have signed an agreement to counter money laundering and terrorist financing.
Prime Minister Malcolm Turnbull said the two nations stand together in rejecting those who seek to impose their world views on others through division and violence.
Mr Turnbull, standing beside Jordan's visiting King Abdullah II, told reporters in Canberra on Thursday there was no more reliable or indispensable partner for Australia in the Middle East.
He described Jordan as a generous host to hundreds of thousands of refugees fleeing conflicts in Syria and Iraq.
The King had been a force for stability and modernisation in his country and the region for 17 years, Mr Turnbull said.
"We thank you for your dedication over many years, for peace, for security and for strengthening the already very strong ties, a century old, between our two great nations."
King Abdullah II said he was truly delighted to be on his first visit to this "great, wonderful country" with his wife Rania.
He thanked Australia for helping deal with the refugee crisis in his region, especially the commitment to accept 12,000 refugees fleeing Syria.
"The refugee influx has strained our budget and infrastructure," he said.
The king reiterated the need for a political solution to the civil war.
He also echoed calls for a peace process in the Israeli-Palestinian conflict.
"I look forward in being able to host you and your family and your government in Jordan," the king told Mr Turnbull, as the pair shook hands.
The royal couple head to Sydney on Thursday afternoon before leaving Australia on Friday.