Anthony Albanese and a delegation of senior ministers will visit Port Moresby this week as PNG prepares to mark 50 years of independence.
Ahead of the Golden Jubilee celebrations, the prime minister described PNG as a close neighbour and true friend.
"Ties between our nations run deep, and over the past 50 years our friendship has continued to evolve and mature," he said on Sunday.
"Australia and Papua New Guinea have a special relationship based on shared values and a vision for a stable and prosperous Pacific region."
Negotiations on the defence deal started in June and it is expected to be signed off on Monday.
Citizens of the neighbouring Pacific nation will be able to serve in Australia's military under the upgraded agreement, though the federal government remains tight-lipped on other details.
Defence Minister Richard Marles would not confirm reports both parties would be required to consult one another if facing a security threat, akin to the requirements spelled out in NATO's Article Four clause.
"The prime minister will be signing this in the next few days, and so I'm going to let the prime minister make those announcements," he told the ABC.
Mr Marles did indicate PNG recruits to the Australian Defence Force would be "managed" to ensure there was no exodus from the neighbouring military.
"We need to be careful about how we do that if we're walking down this path with any of the countries in the Pacific, for sure."
There would be pathways to citizenship and all members of the ADF would be paid equally, he said.
Mr Albanese will attend anniversary celebrations in Port Moresby this week, where he will meet with his counterpart James Marape to sign the defence pact.
Australia has been working hard to bolster ties with PNG and other Pacific nations as it competes with China and other powers for prominence in the strategically-significant region.
The Commonwealth government has also funnelled $600 million into the creation of an NRL team for PNG.
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