The leaders of New Zealand and Japan have held talks in Tokyo agreeing to enhance co-operation in areas such as the environment and security.

Japan's Kyodo news agency says prime ministers Helen Clark and Yasuo Fakuda will also look at the possibility of negotiating a bilateral free trade agreement.

After the talks, Ms Clark said the two sides ''intend to work very closely'' on issues related to climate change policies.

She says this will involve international negotiations on a new carbon-capping framework to be implemented after the expiry of the Kyoto Protocol in 2012.

She also expressed appreciation for the "Cool Earth Promotion Program", Japan's initiative to help developing countries reduce greenhouse gas emissions and to assist nations suffering from the adverse effects of climate change.

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