Australia has signed a new security agreement with the Pacific nation of Vanuatu, amid heightened regional competition with China.

Australia's Foreign Minister Penny Wong attended the signing ceremony in the capital Port Vila on Tuesday.

The new pact covers cooperation in areas including policing, defense and cyber security. It also establishes yearly joint security talks.

Penny Wong said that Australia is proud to be Vanuatu's principal security partner. "We all have a responsibility to ensure our sovereign decisions, enhance the security of all members of the blue Pacific", she added.

The move by Australia comes as China's influence in growing throughout the region.

Beijing signed its own security pact with the Solomon Islands in April, which allows China to deploy police and defense personnel to the country.

This stoked fears in Australia of a permanent Chinese military presence nearby.

Vanuatu's government says that the country has not discussed with China any matter in relation to security.