The agreement came during a meeting between the three on the sidelines of the Group of 7 (G7) summit in the resort town of Kananaskis in Alberta, Canada, Anadolu Agency reported.

"Australia is deepening our trade, security and defense ties with the EU. Today we've agreed to negotiate a Security and Defense Partnership. This will be a framework for our current and growing collaboration in areas like defense industry, cyber, and counter-terrorism," Albanese said on X.

"And we’re resuming negotiations for a Free Trade Agreement, which will mean more jobs in Australia and Europe," he added.

Albanese said he also met with US President Donald Trump’s senior economic team and discussed how they can strengthen their partnership.