Papua New Guinea's government says the visit later this week by Australia's prime minister, Kevin Rudd, will reshape future relations between the two countries.

Our reporter in Port Moresby, Firmin Nanol, says Mr Rudd will visit PNG and the Solomon Islands this week to mend strained relations between its Pacific neighbours.

His tour starts in PNG on Thursday, when he is due to hold talks with his counterpart Prime Minister Sir Michel Somare.

The PNG foreign minister, Sam Abal, says Kevin Rudd's visit has the potential to reshape the scope and spirit in which Australia and PNG conduct their existing bilateral relationship.

He says it builds on the momentum the two leaders started in Indonesia during the Bali World climate change talks, in Indonesia last year.

More than 1,000 school children who will form part of the welcome proceedings in Port Moresby.

Kevin Rudd will visit two Australian government funded projects in the PNG highlands before leaving for Solomon Islands on Saturday.

Produced by Radio Australia and Australia Network