Australian Prime Minister Anthony Albanese has failed in a bid to secure a defense treaty with the South Pacific island nation of Papua New Guinea.



Although it's his second similar setback this month, Albanese on Wednesday said a deal is still on the table.



He said the text of the treaty has been agreed and that it will elevate the relationship to the status of an alliance. It will be Australia's first new alliance in more than 70 years.



Meanwhile, Papua New Guinea Prime Minister James Marape said: "As far as security is concerned, Australia is our security partner of choice. We work with them and that doesn't compromise elsewhere."



Instead of the full treaty, Albanese and PNG counterpart James Marape signed a communique. It states the deal will come "following Cabinet processes in both countries."



Papua New Guinea's defense minister had previously told an Australian broadcaster that "external influences" had been working to undermine the treaty.



But Marape denied any third-party involvement in decision-making. Singling out China, he said it doesn't "have any hand" in his country's affairs.



Australia has stepped up its efforts to further boost ties with the region's smaller nations since 2022, when Beijing struck a security deal with the Solomon Islands.



The latest setback for Australia comes after Vanuatu withdrew from signing a similar security treaty last week.