Papua New Guinea's prime minister is proposing a bilateral special economic zone with northern Australia.
Peter O'Neill has been trying to attract more foreign investors in recent months and says if the federal government decides to develop Australia's north, he wants PNG to be part of it.
He has told a business luncheon in Brisbane that it is important PNG consider establishing a Northern Australia - Papua New Guinea economic zone.
Mr O'Neill says rather than a threat to either country, such a zone should be treated as an opportunity and a logical approach to strengthening links.
The prime minister says the economic development of northern Australia would require a lot of resources such as electricity and water, and that PNG could provide them.
