Prime Minister Abdullah Ahmad Badawi will next month become the first Malaysian leader to visit Australia in more than 20 years, Prime Minister John Howard said yesterday.

Howard said the visit underscored the good relations between Australia and Malaysia, which are expected to start negotiations in the next few months on a bilateral free trade agreement.

"I welcome the fact that Badawi is coming to Australia," Howard told the Channel Seven television network. "He is a good friend of Australia and we have a lot in common with Malaysia.

"There is no country in world that proportionately has more graduates of Australian universities."

Improved ties

The two countries have enjoyed improved relations recently after years of tensions between Canberra and former Malaysian prime minister Mahathir Mohamad.

A government spokeswoman said exact dates for the visit were not yet available.