Australia's national newswire will work with the government to develop a long-term plan for the news media sector after the federal budget earmarked $5 million for the agency.

Communications Minister Michelle Rowland said the funding would help sustain Australian Associated Press while the News Media Assistance Program, known as NewsMAP, is developed.

Lisa Davies, chief executive of AAP, welcomed the government's support and commitment.

"As Australia's only independent newswire, AAP is the backbone of public interest journalism," she said on Tuesday.

"We are dedicated to accurate and impartial reporting, and to protecting Australians from misinformation and disinformation through the essential work of AAP FactCheck."

Ms Davies said AAP looked forward to working with the government on the NewsMAP program and continuing its "vital contribution to a diverse media landscape that serves all communities, including in rural and regional areas".

"AAP's journalists, photographers, and fact checkers work tirelessly to inform and educate, covering the issues that matter to Australians and our democracy," she said.

The support includes $1.8 million in 2022/23 and $3.2 million in 2023/24.