Australia has agreed to intensify military cooperation with China, in a bid to boost ties, Prime Minister Julia Gillard said today.

Ms Gillard said she discussed more military exercises as a result of "friendly" negotiations with Chinese President Hu Jintao.

"(We) indicated a preparedness to keep discussing defence co-operation," she said as quoted by the Sydney Morning Herald.

Ms Gillard pointed to her counterparts that the country's ports are open to visiting Chinese ships and there will be some visiting before the end of the year.

"These are a few small steps on a journey to better understanding each other's military perspectives," she added.

Ms Gillard did not expound how these military exercises will affect relations with the United States and its other allies, who have expressed concern over the motivation behind the Chinese military build-up and the call for greater transparency.

Australia's 20-year defence plan, released in 2009, saw China on track to become Asia's dominant military power "by a considerable margin," but warned that the "pace, scope and structure" of its expansion could create tensions, AFP reported.