Australian Prime Minister Anthony Albanese confirmed on Thursday he would visit China later this year after a meeting with Premier Li Qiang on the sidelines of a Southeast Asia summit in Indonesia.

The announcement comes as Canberra and Beijing try to stabilise relations after years of friction over political and economic issues.

"I... confirmed the invitation from President Xi Jinping. That I would accept an invitation and will visit China later this year at a mutually agreeable time," he told reporters.

The trip would be the first visit to China by an Australian premier since 2016.

Albanese thanked the President Xi for the invitation and said his talks with Li had been "constructive" and "positive", adding the two countries needed more dialogue to improve relations.

"This was an important meeting. I told Premier Li that we would continue to cooperate where we can, disagree where we must and engage in our national interest," he said.

Last November, Albanese met with Xi on the sidelines of the G20 summit on the Indonesian resort island of Bali. (AFP)