O'Neill said he was confident that both Australia and PNG can manage the range of issues confronting the region in a progressive manner, and telling Turnbull that the role of Australian advisors in the country will shift to contract positions within the PNG government by the end of the year.

"This will achieve greater accountability and value for both countries [and] we anticipate that by December of this year that these advisory roles will be converted to line positions, including the policing program within the Australian Federal Police," he said.

In August O'Neill said foreign advisers would be banned - taking effect from January 1 2016 - from working in the PNG government because it made Papua New Guineans "lazy, not able to take over civil decisions" and "dependent on consultants".

He also said both countries were advancing preparations for the APEC summit to be held in Port Moresby in 2018, with Turnbull offering Australia's ongoing support of PNG's position as chair of the Pacific Islands Forum.

Climate change was also discussed between the two leaders, particularly in regards to the upcoming COP21 conference in Paris.

"Turnbull expressed his support and agreed that Australia should provide leadership and support on climate change issues," O'Neill said.