Australia and Vanuatu on Monday signed an economic and security agreement that consolidates Canberra's status as the ​Pacific island state's preferred security and policing partner.

The deal is the latest in a series that Australia has signed with Pacific island nations amid growing rivalry between China and US allies to gain a security presence in the region.

The agreement was to be ​signed last September, but Vanuatu delayed closing the deal amid concerns that it could restrict ⁠its ​ability to secure infrastructure funding from other ​countries.

What does the Australia-Vanuatu deal stipulate?

The so-called Nakamal Agreement enshrines a commitment by Australia to give greater economic support to Vanuatu, while stipulating that no foreign military base will be established in the latter country.