The chief US diplomat, who traveled to the southern city of Melbourne from New Zealand as she winds up a seven-country tour of Asia, was expected to meet new Australian Prime Minister Julia Gillard and Foreign Minister Kevin Rudd.

Their meetings will pave the way for annual security consultations Monday that will also involve US Secretary of Defense Robert Gates and his Australian counterpart Stephen Smith.

"The United States and Australia are key allies with a history of shared political interests and a future of increased cooperation on trade, technology, and transnational interests," the State Department said in a statement.

Rudd welcomed Clinton, saying her visit underlined the "enduring nature" of the alliance between Australia and the United States.

"Secretary Clinton is a true friend of Australia," he said in a statement.

Like New Zealand, Australia has deployed troops to Afghanistan in support of the US-led mission to beat back a renewed Taliban insurgency and help rebuild the war-torn country.

The war in Afghanistan has bipartisan political support in Australia, which has some 1,550 troops in the country, but the government is facing increasing public pressure as the war stretches on amid mounting casualties.

Last month, in her first speech to parliament on the war, Gillard said Australia will be involved in Afghanistan for the next decade and warned of "hard days ahead" for Australian forces which have suffered 21 deaths so far.

The US and Australian sides are due to issue a statement Monday "detailing areas of mutual understanding, including continued efforts in Afghanistan and space and cyber security," the State Department said.

Australian media reports said Canberra will agree to ramp up its military cooperation with the US, including more joint exercises and more visits by US personnel, allowing Washington to expand its military presence in the Asia-Pacific region.

Sources told The Australian newspaper that the deal would not mean new US bases in Australia, but greater access for US personnel to Australian defence facilities. It would also allow the US to store equipment and supplies in Australia.

The agreement would include a plan to "map" objects in space over the southern hemisphere, an issue of increasing interest after North Korea began test missile launches on a southern trajectory, sources told the paper.

Gillard would not confirm the reports, describing them as "speculation about what might come out of those (AUSMIN) talks".

But Gillard, who became prime minister in June, said the talks would discuss the US's force review in the region and this could "have implications in further joint exercises, it could have implications in further joint sharing of facilities, but that's to be worked through".

Clinton and Gillard are also due to announce measures aimed at protecting the environment, deeper collaboration designed to boost the competitiveness of their solar industries, and other efforts to promote clean energy.

Clinton will seek Australian support to boost US trade in the Pacific region, the State Department said. US trade with Australia has flourished since a Free Trade Agreement between the two countries took effect in 2005.

Both American and Australian officials are also likely to discuss their concerns about China's tough line on territorial disputes with Asian neighbours in the Pacific as well as its increased defence spending.

Australia is the final country on an Asia Pacific tour that has taken Clinton to New Zealand, Papua New Guinea, Malaysia, Cambodia, China and Vietnam. She is due to return to Washington on Monday via American Samoa.

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