Mr Howard also noted renewed speculation in Australian media on Tuesday that there was also likely to be an agreement enabling Chinese companies to explore for and mine uranium in Australia.

The Chinese Premier is due to arrive in Australia on Saturday, April 1 and will leave on Tuesday.

Mr Howard told a news conference in Canberra the two sides were "making good progress" in negotiating a nuclear energy deal.

China wants to use more nuclear energy to power its fast-growing economy and to reduce its energy dependence on coal and oil.

Australia holds about 40 percent of the world's known uranium deposits and agreed in principle during a visit by Mr Howard to China in April last year to work on a nuclear safeguards agreement that would permit sales of uranium to China for peaceful purposes.

Plans to negotiate the nuclear co-operation agreement with China were confirmed by Australian Foreign Minister Alexander Downer last August.

A nuclear deal would be part of a broader Australia-China free trade agreement that is now under negotiation.

CNN