The prime ministers of both countries, Mr Kevin Rudd and Mr Lee Hsien Loong inked the memorandum of understanding at the Istana on Tuesday.

The broad agreement aims to expand military cooperation between Australia and Singapore, and will promote the sharing of resources and the development of military expertise.

'Both countries will also cooperate through exercises and operations, in areas such as humanitarian and disaster relief, search and rescue and peace support,' said a statement from the Singapore's Defence Ministry.

The pact also advocates cooperation in defence technology research and calls for annual meetings to be held between officials from the Australian Department of Defence and the Singapore Ministry of Defence.

The agreement 'demonstrates the importance both countries place on bilateral military interactions and the political support from both countries for the various training arrangements between their armed forces,' the statement said.