The announcement comes a day after armed soldiers attacked people at the Port Moresby General Hospital just hours before Kevin Rudd arrived in the capital for talks with his counterpart.
|Photo: 50 Australian police officers will be sent to Papua New Guinea by the end of the year to help PNG with law and order problems. (ABC TV)|
They have both committed to continuing towards an original solution for people smuggling.
Mr Rudd said infrastructure projects, including work on a highway, will be brought forward by a year.
Australian trade minister, Richard Marles, will stay on in PNG for further work on trade deals.